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Perrigo rejects formal bid from Mylan

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NEW YORK — For the second time this week, Perrigo Co. plc has rejected an acquisition offer from Mylan N.V.

On Friday morning, 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 nixed Mylan’s unsolicited bid on April 21, saying it undervalued the company. The Perrigo board gave the same reason in rejecting Mylan’s formal proposal just hours after it was announced on Friday.

Mylan itself is subject to an acquisition bid from Teva Pharmaceutical Industries Ltd. On Tuesday, Teva proposed to buy Mylan in a cash-and-stock deal valued at about $40 billion and urged the company to forgo its pursuit of Perrigo.

“The board previously concluded that Mylan’s unsolicited proposal 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 stated on Friday. “Today’s announcement from Mylan proposes a price that is 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 offer is $181.67 per Perrigo share.”

Mylan has said it will remain focused on its bid for Perrigo and on Friday commenced a formal offer to buy the company.

“Mylan has today begun a legally binding process under the Irish Takeover Rules to commence its offer for Perrigo, demonstrating our commitment to making this compelling combination a reality,” Robert Coury, executive chairman for Mylan, said in a statement. “We are taking this next critically important step, which begins the clock under the rigid time frame set by the Irish Takeover Rules, in order to continue to ensure clarity and certainty around our intentions for investors, particularly in light of the strong market reaction to this combination and demands from investors for us to take this step.”


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