Mylan this morning said Perrigo shareholders tendered 40 percent of outstanding shares to Mylan, or about 58 million shares, which was well short of the 50 percent needed and caused the takeover bid to lapse.
Advertisement
While more shares could still be tendered, many large institutional investors would have tendered their shares at this stage if they were going to accept the offer, the person added.
Mylan NV makes more than 1,000 generic drugs and the EpiPen Auto Injector, which is used for the emergency treatment of allergic reactions.
Mylan N.V. (NASDAQ: MYL; TASE) today announced that its offer to acquire all of the issued and to be issued share capital of Perrigo Company plc (NYSE: PRGO; TASE) has lapsed.
The British company that was trying to take over Perrigo in Allegan has failed.
“We are very pleased with this outcome since we have always argued that Perrigo’s standalone prospects are significantly more attractive than what was embedded in the Mylan offer”, Jefferies analyst David Steinberg wrote in a note.
Over the past few weeks, generic pharmaceuticals manufacturer Mylan has held a major campaign in Israel to try and win over the Israeli investors who hold an estimated 10% of Perrigo. It said late last month that that it could deliver better value than Mylan through a plan to cut costs and buy back stock.
Mylan had used a Dutch poison pill-style defense to fight a $40bn takeover by Teva, arguing that a deal was “without sound industrial logic or cultural fit” and that it would face regulatory hurdles.
Mylan CEO Heather Bresch cited the company’s 27% compound annual growth rate in adjusted diluted earnings per share (EPS) for shareholders since 2008, as well as recent financial results.
Advertisement
Analysts covering both companies welcomed the development.
