Perrigo shareholders snub drugmaker Mylan's $26 billion hostile bid

Fri Nov 13, 2015 2:18pm EST
 
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By Ankur Banerjee

(Reuters) - Perrigo Co Plc's (PRGO.N: Quote) shareholders rejected Mylan NV's (MYL.O: Quote) $26 billion hostile bid, ending the Netherlands-based generic drug maker's seven-month pursuit of its smaller rival.

Mylan's offer expired on Friday with just 40 percent of Perrigo shares tendered, below the required minimum 50 percent, ensuring victory for Perrigo Chief Executive Joseph Papa.

Mylan shares rose as much as 14.4 percent, while Perrigo shares fell as much as 10 percent.

Perrigo can re-enter the M&A arena with much less uncertainty, increasing the odds of a mid-sized to large deal, Jefferies analyst David Steinberg wrote in a note.

Reuters reported on Thursday that the Dublin-based company had held talks with Endo International Plc (ENDP.O: Quote), another Ireland-based drugmaker.

Healthcare deals worth a record $477 billion had been announced by the end of October, according to Thomson Reuters data, as companies consolidate to cut costs and gain scale.

Perrigo, with a large portfolio of consumer products, infant formulas and over-the-counter generic topical drugs, has long been seen as a takeover target.

To convince investors to rebuff Mylan's offer, Perrigo had announced job cuts and a $2 billion share buyback plan last month.   Continued...

 
Robert J. Coury, Chairman and Chief Executive Officer of Mylan (L) participates in a bell ringing ceremony with officials at the Tel Aviv Stock Exchange, Israel November 4, 2015. Mylan NV's $26 billion hostile bid for Perrigo Co Plc collapsed on November 13, 2015 after the Netherlands-based drugmaker failed to secure at least half of Perrigo's outstanding shares in the tender offer.  REUTERS/Nir Elias/Files