Perrigo (PRGO – Get Report) stock is sliding by 0.30% to $181.85 in early morning trading on Thursday, as the company urges its shareholders to reject a takeover bid from pharmaceuticals company Mylan.
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Perrigo said shareholders should “just say no” by taking no action.
In a letter to shareholders, Perrigo offered a laundry list of reasons that investors should not buy into Mylan’s proposal and tender their shares. As a result, the company’s president, CEO and chairman Joseph Papa has issued a letter to shareholders recommending against tendering their shares to Mylan.
Mylan is based in the Netherlands, and Perrigo Co.is headquartered in Ireland.
“We look forward to discussing our offer directly with Perrigo shareholders in the coming weeks and are confident that the clear and direct pathway to completion that we have provided will allow us to close our offer on November 13 with the robust support of Perrigo shareholders”, Coury continued.
Generic drug maker Perrigo’s board has once again unanimously rejected Mylan’s takeover bid for the company.
“If this transaction occurs, Perrigo shareholders would own a significant stake in a slower growth and riskier business”, Brown said. “Simply stated, Perrigo has an outstanding track record of value creation and our future is bright”.
Mylan is seeking to acquire all of the outstanding shares of Perrigo for $75 per share in cash along with a swap of 2.3 Mylan ordinary shares for each ordinary Perrigo share.
Another drawback raised today for the first time is the potential $1 billion hit from provisions in contracts with suppliers, Brown said.
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Brown called Mylan’s estimates of generating $800 million in operating synergies by acquiring Perrigo as “overly optimistic” and would take at least three years to accomplish.
