Mylan said Friday that shareholders backed its proposal to acquire Perrigo, with more than two-thirds of shareholders voting in favour of the deal at an extraordinary general meeting. Mylan executive chairman Robert J. Coury commented "we look forward to launching our formal offer directly to Perrigo shareholders in the coming weeks, and we are very confident that they too will support this unique and compelling transaction."
Mylan also noted that the proposal was supported by "more than a majority" of all outstanding ordinary shares. Abbott, Mylan's largest shareholder, had previously noted that it would vote its 14.5-percent stake in favour of the transaction, while proxy firm Institutional Shareholder Services urged investors to reject the proposal due to "unreasonable uncertainties" about the bid.
Mylan has a deadline of September 14 to formally initiate the process for acquiring Perrigo, which rejected Mylan's most recent offer of $75 in cash and 2.3 Mylan ordinary shares per Perrigo share as undervaluing the company. Meanwhile, Perrigo CEO Joseph Papa remarked "we are confident that the majority of Perrigo shareholders will not tender their shares to Mylan," adding "we will continue to create superior value well in excess of Mylan’s offer, and with less risk."
The executive repeated his criticism of Mylan's decision to lower the acceptance condition required to pursue its hostile bid from at least 80 percent of Perrigo ordinary shares previously, to more than 50 percent of Perrigo ordinary shares as well as "Mylan's highly troubling governance approach." Papa previously stated that Perrigo has options to thwart Mylan's bid, including potential acquisitions.
Earlier this week, Mylan chided Perrigo for making "misleading" statements regarding its offer, noting that the statements have "unfortunately been inaccurately repeated by other third parties." The company noted that the Irish Takeover Panel concluded that some of Perrigo's comments could possibly "mislead shareholders and the market or may create uncertainty," in violation of panel rules.
Analysts have suggested that Mylan now has "less leverage" to acquire Perrigo after Teva's decision to halt its pursuit of the company in favour of a purchase of Allergan's global generic pharmaceuticals business for $40.5 billion. However, Mylan CEO Heather Bresch has said the drugmaker has other options if its pursuit of Perrigo fails.
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