The English pharmaceutical company that wants to buy Perrigo Co. plc is now the target of an unsolicited buyout offer.
Israel-based Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today offered to buy Mylan N.V for $40 billion, or $82 per share. Teva predicated the offer on Mylan dropping its bid earlier this month to acquire Perrigo.
“Teva’s proposal is contingent on Mylan not completing its proposed acquisition of Perrigo or any alternative transactions,” Teva President and CEO Erez Vigodman wrote in a letter to Mylan Executive Chairman Robert Coury. “We firmly believe that a combination of Teva and Mylan is a much more attractive and value-creating alternative for Mylan and its stockholders than Mylan’s proposed acquisition of Perrigo.”
The Potters Bar, England-based Mylan as of early this afternoon had not formally responded to the offer, but did say last Friday when word of the coming offer was reported by Bloomberg News that it was “fully committed to its stand-alone strategy, including its proposal to acquire Perrigo.”
Teva produces generic medications, pharmaceuticals and active ingredients.
Mylan has looked as a possible deal with Teva “for some time and we believe it is clear that such a combination is without sound industrial logic or cultural fit. Further, there would be significant overlap in the companies’ businesses and we believe that it is unlikely that any such combination could obtain anti-trust regulatory clearances,” the company said in an April 17 statement.
A producer of generic drugs and specialty pharmaceuticals, Mylan (Nasdaq: MVL) on April 8 offered Perrigo (NYSE: PRGO) shareholders $205 per share, or about $28.9 billion, in cash and stock for each share they hold.
A merger between Mylan and Perrigo would create a company with about $15.3 billion in pro forma sales. Perrigo Chairman and CEO Joe Papa would serve as co-chairman of the company.
Perrigo, which maintain corporate headquarters in Allegan but is now domiciled in Dublin, Ireland following its December 2013 acquisition of Elan Corp, has not commented on the Mylan offer other than to say it has been received and that the board of directors would meet to discuss it.
Perrigo shares as of a little around 1:30 p.m. today were trading down for the day about 2 percent.