Mylan has officially commenced its hostile takeover attempt for Perrigo.
Perrigo says that it will assess the offer and advise its shareholders of its recommendation within 10 working days. The company has “strongly advised” shareholders to take no action until the board’s review is complete.
But Mylan’s executive chairman Robert Coury says that his company is confident that “the majority of Perrigo shareholders will support this full and compelling offer, particularly in the absence of any competing interest in this asset and the significant uncertainties, execution risk and lengthy timetable associated with Perrigo's standalone strategy”.
The offer is valued at around $27 billion, with Perrigo stockholders receiving 75 in cash and 2.3 Mylan ordinary shares for each Perrigo ordinary share, equating to about $187 a share overall.
Perrigo’s board has repeatedly rejected Mylan’s offers, arguing that they undervalue the company.
Coury added: "We believe that the choice we have given Perrigo shareholders is more clear today than ever before: accept a highly attractive offer and participate in the exciting potential for growth and value creation of a combined Mylan-Perrigo, or receive no upfront cash and risk a significant and precipitous drop in value in Perrigo's stock.”