Mylan considering renewed offer for Perrigo: report

According to a person with knowledge of the matter, Mylan plans to soon make a second offer to purchase Perrigo, CNBC reported Wednesday. Sources stated that the renewed bid would include firm financing commitments, as well as firm commitments to proceed with the transaction.

Earlier this week, Perrigo's board of directors unanimously rejected Mylan's unsolicited takeover offer, valued at $205 per share in cash and stock, saying that the deal substantially undervalued the company. Specifically, Perrigo, which relocated its domicile to Ireland in 2013 upon its $8.6-billion purchase of Elan, suggested that Mylan's offer did not account for its recent acquisitions, including its agreement to purchase Omega Pharma last year.

Meanwhile, Teva announced earlier this week that it had made an offer to acquire Mylan for $82 per share, or about $40.1 billion in cash and stock, provided the latter drugmaker abandons its pursuit of Perrigo.

Mylan executive chairman Robert Coury has questioned whether such a merger with Teva would be cleared by antitrust regulators, while the company, which transferred its domicile to the Netherlands as part of its 2014 acquisition of Abbott's developed-markets branded generics business last year, recently enacted a mechanism under Dutch law that would make a takeover more difficult.

For related analysis, see ViewPoints: Perrigo to Mylan: 'your move', as well as ViewPoints: Agree to disagree – will FTC considerations scupper a Teva-Mylan deal? See also ViewPoints: Mylan begins courting Perrigo – is offence its best defence against Teva?

To read more Top Story articles, click here.