As deadline looms, Mylan pushes Perrigo shareholders to OK buyout offer
With a deadline looming, generic drugmaker Mylan NV appealed Tuesday to Perrigo Co. shareholders to accept a $30 billion buyout offer.
Mylan executives warned Perrigo shareholders that they aren’t going to find a better deal from another suitor. Chief Financial Officer John Sheehan said no other company has proposed a higher price.
“They simply will not be able to beat our offer,” he said on a conference call with analysts. “The silence is deafening.”
Mylan said the purpose of the call was to present its reasons Perrigo shareholders should support the deal. Shareholders of the Ireland-based generics company have until the end of day on Nov. 12 to decide if they should sell their shares to Mylan, which is headquartered in the Netherlands and run from Cecil.
Perrigo’s board has rejected several offers from Mylan since April, saying that the bids undervalued the company. Mylan started a hostile takeover last month, telling Perrigo shareholders it would buy them out for $75 and 2.3 Mylan shares. The offer values Perrigo at $173 a share.
Perrigo closed Tuesday at $158.18, down $3.35. Mylan closed at $41.42, down $1.48.
Mylan needs to buy more than 50 percent of Perrigo’s shares to take control of the maker of store-brand, over-the-counter medicines. If Mylan fails to meet that threshold, Irish law requires the company to drop its bid.
Once Mylan has control of the company, it plans to reopen the offer and hopes to convince remaining shareholders to sell. If it obtains 80 percent of Perrigo’s shares, remaining holdouts can be forced to sell their shares to Mylan under Irish law.
Perrigo officials could not be reached for comment Tuesday. Perrigo CEO Joseph Papa has criticized Mylan management and corporate governance and said the company “undervalues our compelling prospects for continued growth and sustainable, long-term shareholder value.”
Executive Chairman Robert Coury, who has traded barbs with Papa in recent months, said Mylan is offering a better deal than Perrigo’s management team can deliver as a standalone company.
“The strategic logic of this transaction remains undisputed,” he said. “This is simply the right next transaction for both companies.”
Coury declined to say how many Perrigo shares it has picked up, but said, “we have a lot of inquiries right now.”
Alex Nixon is a Trib Total Media staff writer. Reach him at 412-320-7928 or [email protected].