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Perrigo shareholders nix Mylan bid

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NEW YORK — Shareholders of Perrigo Co. plc have rejected a hostile bid by Mylan N.V. to acquire the company in a deal valued at about $27 billion.

Perrigo Mylan logos_croppedPerrigo said Friday that shareholders holding more than 60% of its outstanding shares declined to tender into Mylan’s offer by the 8 a.m. ET deadline. The offer has now lapsed.

“We have said all along that this offer from Mylan was a bad deal for our shareholders, as it significantly undervalued our durable business model and industry-leading future growth prospects,” Perrigo chairman and chief executive officer Joseph Papa said in a statement. “Strong organic growth, a disciplined approach to M&A, and transparent, accessible corporate governance policies are the foundation of our successful business strategy. I am delighted that Perrigo shareholders voiced their clear support for this management team and our long-term strategy.”

Dublin, Ireland-based Perrigo reported that it will immediately commence its previously announced $2 billion repurchase of its shares and plans to complete $500 million of the planned repurchase by the end of 2015.

Last week, Mylan N.V. received clearance from the Federal Trade Commission for its proposal to acquire Perrigo after agreeing to divest certain generic drug products. The move left Mylan’s unsolicited bid in the hands of Perrigo shareholders, who had until Nov. 13 to accept the tender offer.

Mylan needed shareholders holding 80% of Perrigo’s outstanding shares to tender into its offer in order to proceed with the takeover of Perrigo.

“As we have said all along, Mylan viewed Perrigo as a unique and exciting opportunity, but not one that was required for the future success of our company,” Mylan executive chairman Robert Coury commented Friday.

In early April, Mylan made an unsolicited bid to acquire Perrigo in a cash-and-stock deal. That proposal, and later an increased offer, were rejected by Perrigo, which said the bids undervalued the company. Then in September, Mylan announced it was taking its bid directly to Perrigo shareholders, offering $75 in cash and 2.3 Mylan ordinary shares for each Perrigo ordinary share. And late last month, the U.S. District Court for the Southern District of New York denied a motion by Perrigo for a preliminary injunction against Mylan’s proposed acquisition of the company.


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