Mylan (MYL) announced Friday morning that its offer to acquire Perrigo (PRGO) has lapsed. Perrigo has however called the Mylan proposal inadequate.
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Shannon, Perrigo’s vice president for investor relations and global communications, told The Greenville News Monday that the company still intends to sell its vitamin and nutritional supplement factory in Greenville, even though a majority of Perrigo shareholders rejected a hostile takeover by rival drugmaker Mylan.
Mylan shares were up 13.4 per cent at $48.98 in afternoon trading, while Perrigo shares were down 7 per cent at $145.50.
Meanwhile, Perrigo has also made a few defensive acquisitions in a bid to maintain its independence, snapping up a portfolio of GlaxoSmithKline (GSK) consumer health brands in June including nicotine replacement therapies NiQuitin and Nicotinell.
“As indicated last week, we remain focused on utilizing the optionality provided by Mylan’s strong balance sheet and ample financial flexibility in pursuit of external opportunities that further build on our existing platform and position us for continued growth and value creation, and we have already identified a number of potential opportunities”, Executive Chairman Robert Coury said in a statement.
Perrigo chairman and CEO Joseph Papa said: “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”.
Any Perrigo ordinary shares which have been tendered by Perrigo shareholders have not been accepted for exchange and will be promptly returned to the relevant Perrigo shareholders.
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Perrigo said it will immediately start its $2bn share-buyback plan. The latter proposed, and subsequently withdrew, a $40bn takeover deal but has been rumoured to be preparing a fresh bid for the Dutch company.
