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Mylan raises bid, Perrigo again rejects

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NEW YORK — Mylan N.V. has upped its offer to acquire Perrigo Co. plc but received the same response: no.

On Wednesday, Mylan announced an increased bid in which Perrigo shareholders would receive $75 in cash and 2.3 Mylan ordinary shares for each Perrigo ordinary share, a deal valued at more than $35 billion. But just a couple of hours later, Perrigo’s board said it was rejecting the new offer.

“The board previously concluded that Mylan’s unsolicited proposal of April 8 of $205 per share significantly undervalued the company and its future growth prospects and was not in the best interests of Perrigo’s shareholders,” Perrigo’s board said in a statement on Wednesday. “Today’s announcement from Mylan continues to propose a price lower than the previously rejected proposal. Based on Mylan’s unaffected price of $55.31 per share on March 10, 2015, the last day of trading prior to widespread public speculation that Teva was considering an offer for Mylan, the value of the revised offer is $202.20 per Perrigo share.

“Shareholders are strongly advised to take no action in relation to the offer,” Perrigo’s board said.

Last Friday, Potters Bar, England-based Mylan announced a formal offer to buy Perrigo for $60 per share in cash and 2.2 Mylan ordinary shares for each Perrigo ordinary share. Based on the prior day’s close, the deal has a total value of about $33 billion, or $222 per share, up from Mylan’s April 8 unsolicited bid of $205 per share, a cash-and-stock deal valued at about $29 billion.

Dublin, Ireland-based Perrigo rejected Mylan’s unsolicited bid on April 21, saying it undervalued the company. The company’s board gave the same reason in nixing Mylan’s formal proposal just hours after it was announced on April 24.

Mylan executive chairman Robert Coury commented, “With this enhanced offer, I look forward to meeting with [Perrigo chairman and chief executive officer] Joe Papa and his team to finalize the implementation of this truly compelling combination, which is a win-win for both Mylan and Perrigo shareholders and all other stakeholders.”

Heather Bresch, CEO of Mylan, described the potential combination of Mylan and Perrigo as a compelling proposition. “The industrial logic behind the combination of Mylan and Perrigo will generate significant value for customers, patients, employees, shareholders and other stakeholders by creating a one-of-a-kind global health care company that will be uniquely positioned within our evolving industry given its complementary businesses and cultures, unmatched scale in its operations and infrastructure, broad and diverse portfolio, and immense reach across distribution channels around the world,” she stated.

Meanwhile, Mylan is dealing with an acquisition bid from Teva Pharmaceutical Industries Ltd. Earlier this week, Mylan rejected Teva’s unsolicited offer, a cash-and-stock deal valued at more than $40 billion.


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