Mylan says it will launch $27.14B bid for Perrigo

AP News
|
Posted: Sep 08, 2015 6:51 PM

NEW YORK (AP) — Dutch drugmaker Mylan says it will launch a $27.14 billion offer for Irish generic drug and ingredients maker Perrigo next Monday.

Perrigo has already turned down several offers from Mylan, so Mylan said Tuesday that it will take the latest offer directly to the company's shareholders. Perrigo said in August that it was confident its shareholders would reject Mylan's overture.

Mylan is offering $75 in cash and 2.3 shares of its own stock for every Perrigo share. Based on Friday's closing prices, that values Perrigo at about $185.52 per share, a premium of about 4 percent. Perrigo Co. stock added $1.85 to $180.65 on Tuesday.

Dublin-based Perrigo did not immediately comment on Mylan's announcement.

Mylan wants to combine its prescription generic drug business with Perrigo's business in over-the-counter products like vitamins, nutritional products and infant formula, and it says the two companies would have about $15 billion in combined annual revenue. Mylan shareholders voted in favor of the acquisition last month and European Union regulators have cleared it.

Mylan NV offered to buy Perrigo for $205 per share in April and later increased its offer to $232.23 per share, or $34.1 billion. Perrigo said that cash-and-stock offer wasn't worth as much as Mylan said. At the time Mylan's stock price was elevated as an even larger generic drug company, Teva Pharmaceutical Industries Ltd., was trying to buy Mylan. Mylan fended off Teva, which decided to buy Allergan PLC's generic drug business for $40.5 billion instead.

Shares of Mylan traded as high as $76.68 in April and closed at $48.05 on Friday. They fell about 15 percent on the day that Teva's offer for the Allergan generic unit was announced.

Mylan stock rose 67 cents to $48.72 on Tuesday.