Mylan N.V. again increased its offer to acquire Perrigo Co., now
to $35.6 billion, the latest move in a three-way takeover tussle in
the pharmaceutical industry.
Mylan's latest bid consists of $75 in cash and 2.3 Mylan shares
for each share of Perrigo. Based on Tuesday's close, the offer
values Perrigo at about $242.23 a share.
Shares of Mylan rose 0.2% in morning trading, while shares of
Perrigo added 1.6%. Representatives for the two companies weren't
immediately available for comment.
The previous offer, from April 24, consisted of $60 in cash and
2.2 Mylan shares for each share of Perrigo, and it valued Perrigo
at about $222 a share, or about $33 billion. The April 24 offer was
up from Mylan's earlier approach of $205, which was an unspecified
mix of cash and stock.
Perrigo has rejected the previous bids, calling them too
low.
On Wednesday, Mylan Executive Chairman Robert Coury said the
company has made a "'hell or high water" commitment" to close the
deal and obtain clearance.
Mylan shareholders would now own about 61% of the combined
company, while former Perrigo shareholders would own about 39%.
Meanwhile, Mylan itself has been the target of a proposed $40
billion takeover from Teva Pharmaceutical Industries Ltd. Mr. Coury
on Monday issued a stinging rebuke of Teva, questioning the
credibility of Erez Vigodman, Teva's chief executive; repeatedly
chiding Teva for a "dysfunctional culture;" and disparaging what he
called a "poorly performing, troubled company" that has displayed
"consistent underperformance."
Mylan and Perrigo generally compete in different segments of the
generic-drug business. Mylan is best-known for selling generic
prescription drugs, though its top-selling product is the EpiPen
emergency treatment for allergic reactions. Perrigo makes
over-the-counter cough-and-cold remedies and infant formula for
chains like Wal-Mart Stores Inc. and Walgreens, which sell the
products under their own names.
Neither company is a household name, but a combination of Mylan
and Perrigo would create one of the world's top sellers of
low-price medicines with $15.3 billion in yearly sales.
Under takeover rules in Ireland, where Perrigo is based, Mylan
is obligated to make a public announcement once it has started the
formal process of acquiring another company.
Write to Angela Chen at angela.chen@dowjones.com
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