Perrigo CEO Joseph Papa suggested that the company would be willing to enter takeover talks with Mylan if the price was right, although he noted that the parties are currently "pretty far apart." Last month, Perrigo rejected Mylan's offer of $75 in cash and 2.3 Mylan shares for each Perrigo share.
According to Perrigo, Mylan's bid is worth $202 a share, due to the latter's share price being inflated. However, Mylan has said the offer for Perrigo is worth $232.23 per share. "We believe they have substantially undervalued the company," Papa remarked, although the executive declined to comment on what price he is seeking.
Papa also noted that Mylan's previously disclosed intention to go directly to Perrigo's shareholders with its bid could happen by September 14. Mylan chief financial officer John Sheehan indicated that the company is still working to answer questions from the Federal Trade Commission as it seeks to make a deal for Perrigo passable to regulators.
Recently, Mylan executive chairman Robert Coury suggested that the drugmaker could enhance its offer to lower the risk to Perrigo's shareholders. Papa said the inclusion of such terms could assist in a deal being reached.
For related analysis, read ViewPoints: Come to Papa – Perrigo encourages another Mylan bid and ViewPoints: Perrigo to Mylan: 'your move'.
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