Mylan to Launch Formal Bid for Perrigo

PITTSBURGH (Pittsburgh Post-Gazette/TNS) -

With the blessing of its shareholders in hand, generic-drug maker Mylan announced Tuesday that it will launch its formal offer for Perrigo Co. shares on Monday.

The offer would give shareholders $75 in cash and 2.3 Mylan shares for each Perrigo share.

Perrigo, an Irish over-the-counter drug specialist, has opposed the bid by Mylan, which this year reincorporated in the Netherlands to reduce its global tax bill but maintains its operational headquarters in suburban Pittsburgh.

“We are very excited to commence the final step in this transaction and to complete the compelling combination of Mylan and Perrigo,” said Robert J. Coury, Mylan executive chairman, in Tuesday’s announcement.

Mylan also released the text of a letter sent to Perrigo CEO Joseph C. Papa, which argues that “this is a highly compelling offer in terms of the price, multiple being paid, accretion and long-term potential for value creation.”

Mylan wants to complete the transaction by Nov. 13.

Analysts have said that significant swings in Mylan’s share price since it is no longer an acquisition target itself have made the offer to Perrigo shareholders less attractive.

But Mylan’s letter to Papa makes the case that Perrigo’s stock has been protected from stock-market swings by Mylan’s interest, and that Perrigo shareholders can expect their shares to drop in value if the deal doesn’t go through.

The offer to Perrigo shareholders was cleared in late August. At a meeting in Amsterdam, Mylan shareholders authorized the company to offer Perrigo stockholders 338.5 million Mylan shares and $11 billion in cash in exchange for their shares.