Perrigo Rejects Mylan’s Takeover Bid Once Again

Bloomberg reported that on Wednesday, Mylan NV (NASDAQ:MYL) offered $75 in cash and 2.3 shares for every share of Ireland’s Perrigo Company plc (NYSE:PRGO), a manufacturer of private label over-the-counter pharmaceuticals. That comes to $32.7 billion in cash and stock and is up from Mylan’s previous two offers.

However, Perrigo once again rejected the offer, calling it “too low and putting pressure on Mylan to raise the bid further.”

As quoted in the market news:

Persuading Perrigo to accept an offer could help Mylan avoid getting bought by Teva. The Israeli drugmaker had proposed a $40.1 billion takeover last week, saying the offer was good as long as Mylan dropped its bid for Perrigo. Mylan rejected the bid, saying Teva is a poor cultural fit.

Perrigo, which makes generic and over-the-counter medicine, had said last week’s proposal wasn’t as high as it seemed because Mylan’s stock had been inflated by Teva’s offer. Perrigo pegged the value of Mylan’s stock to its closing price of $55.31 on March 10. At that price, the new offer is worth $202.21 a share, or an 8.5 percent premium over Perrigo’s closing price Tuesday.

However, Mylan said its offer Wednesday is worth $232.23 a share based on its closing share price on April 8 — or a 25 percent premium.

Perrigo said in a statement:

Today’s announcement from Mylan continues to propose a price lower than the previously rejected proposal.

Click here to read the full Bloomberg report.