Perrigo board urges shareholders to reject Mylan’s offer

DUBLIN — Perrigo announced Thursday that its board of directors unanimously rejects Mylan’s offer to Perrigo shareholders on the grounds that it undervalues the company. As a result, the company’s president, CEO and chairman Joseph Papa has issued a letter to shareholders recommending against tendering their shares to Mylan.

“After consideration of Mylan's offer, our Board of Directors unanimously concluded that the offer substantially undervalues the strength of Perrigo's business, operations, and future growth opportunities,” Papa wrote. “We are confident in our 5-10% three-year organic revenue CAGR goal, as executed historically, and we expect to meet our financial targets in the years to come, creating value for you well in excess of Mylan's offer, and with less risk.”

On Monday, Mylan sent its formal offer to acquire Perrigo for $27 billion to Perrigo shareholders, who would receive $75 cash and 2.3 Mylan ordinary shares for each of their Perrigo shares if the deal were to go through. Mylan’s executive chairman Robert Coury was hopeful upon tendering the offer that Perrigo shareholders would support the acquisition. 

“We are highly confident that the majority of Perrigo shareholders will support this full and compelling offer, particularly in the absence of any competing interest in this asset and the significant uncertainties, execution risk and lengthy timetable associated with Perrigo's standalone strategy,” he said.