The US District Court for the Southern District of New York on Friday denied Perrigo's request to block Mylan's tender offer to acquire the Irish drugmaker. In its ruling, the court determined that Mylan had provided sufficient disclosures regarding potential synergies that would be achieved through a merger of the companies. The court also concluded that Mylan sufficiently disclosed its intention to delist Perrigo's stock as soon as practicable following completion of the offer.
In the case, Perrigo argued that Mylan has misled shareholders by overstating potential synergies. The latter has previously said that it could achieve at least $800 million annually in synergies by the end of year four in an acquisition of Perrigo. The Irish company also claimed that Mylan's falsely stated that it could delist Perrigo's shares in an effort to compel shareholders to back the tender offer.
Mylan has offered to acquire Perrigo for $75 in cash plus 2.3 Mylan shares for each Perrigo share. More than two-thirds of Mylan shareholders tendered their shares in favour of the transaction at an extraordinary general meeting held after the company reduced the condition needed to proceed with the transaction from at least 80 percent of Perrigo ordinary shares to more than 50 percent.
Meanwhile, Perrigo has urged its shareholders to reject the tender offer, which it previously dismissed as undervaluing the company. Perrigo CEO Joseph Papa recently expressed confidence that Perrigo shareholders would reject the offer, while the company also announced a restructuring plan in an effort to thwart Mylan's efforts
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