Sources suggest Mylan's tender offer for Perrigo set to fail as deadline approaches

UPDATE: Mylan said Friday that its bid to acquire Perrigo lapsed after only around 40 percent of the latter's outstanding ordinary shares were tendered in the offer.

Sources familiar with the matter had previously suggested that Mylan's $26-billion hostile takeover bid for Perrigo looks unlikely to succeed, with the deadline for the tender offer set to expire on Friday. People suggested that about 40 percent of Perrigo's ordinary shares had been tendered 10 hours before the bid was due to expire, short of Mylan's acceptance threshold of more than 50 percent.

Although more shares could still be tendered, the sources noted that many large institutional investors would have tendered their shares at this stage if they were going to accept the offer in order to be counted by the national stock clearinghouse known as DTC.

Mylan first made a bid for Perrigo in April, before launching a hostile tender offer in September, worth $75 in cash and 2.3 of its shares for each Perrigo share. Last month, Perrigo announced that as part of efforts to deliver shareholder value to fend off Mylan's bid, it will cut 800 jobs from its global workforce, representing about 6 percent of staff, and buy back $2 billion worth of shares.

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