Mylan will launch a hostile takeover bid on Perrigo. The American pharmaceutical group – for months in the crosshairs of the Israeli Teva, which in July gave up pursuing a merger preferring to buy the division of Allergan dedicated to generic drugs – announced that on 14 September it will present directly to the shareholders of the Irish company the proposed purchase of all outstanding ordinary shares.
Under the offer, Perrigo shareholders will receive $75 in cash and 2,3 Mylan shares for every Perrigo share they own. On August 28, more than two-thirds of Mylan's shareholders approved the proposed purchase of Perrigo for a value of 35,6 billion dollars. On that occasion, Mylan said he wanted to "launch a formal offer to Perrigo's shareholders".
The group was "confident" that Perrigo's partners would "support this unique transaction." As explained today by the group, Robert Coury, executive chairman of Mylan, sent a letter to the president and chief executive officer of Perrigo, Joseph Papa. In it he explains that he "believes in this highly attractive offer for Perrigo shareholders in terms of price, multiples and creation of potential value in the long term”.
It remains to be seen what the reaction of Perrigo's shareholders will be. While awaiting a comment from the Irish company, it should be recalled that on August 28 Perrigo itself had declared that it was "confident that the majority of the shareholders will not deliver their shares to Mylan" and had said that it had rejected the offer of Mylan because he "significantly underestimates" the group. A combination of the two companies would create one of the world's leading sellers of low-cost medicines with annual sales of $15,3 billion. The Perrigo stock as well as that of Mylan have little moves in the pre-market.
