Mylan executive chairman says open to enhancing Perrigo bid: report

According to people with knowledge of the matter, Mylan executive chairman Robert Coury informed investors of plans to enhance the company's offer to acquire Perrigo, Bloomberg reported. Last month, Perrigo rejected an increased offer from Mylan, under which it proposed to acquire the company for $75 in cash and 2.3 Mylan ordinary shares per Perrigo share.

However, Coury suggested that Mylan could amend the terms to include payments to Perrigo in the event that a deal fell apart, or other sweeteners to reduce the risk to Perrigo shareholders, the sources noted. The executive also reportedly reaffirmed that Mylan would resist takeover attempts from Teva, following a recent rebuttal of interest from the Israeli drugmaker. Teva's $40.1-billion offer is contingent on Mylan dropping its bid for Perrigo.

The people added that Coury detailed various alternative scenarios, including that a combination of Mylan and Perrigo would be an attractive future target for Pfizer. Sources said that Coury also mooted the possibility of Mylan eventually entering a deal to buy Novartis' Sandoz unit in exchange for a stake in Mylan.

Meanwhile, Coury recently suggested that Mylan could pursue a future acquisition of Teva, if it completes the purchase of Perrigo. For related analysis, see ViewPoints: Perrigo to Mylan: 'your move'.

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