Perrigo shareholders reject Mylan’s acquisition attempt

PITTSBURGH and DUBLIN — Mylan and Perrigo announced Friday in separate statements that fewer than 50.1% of Perrigo’s shareholders had tendered their shares to Mylan, ending a months-long acquisition effort by Mylan. When the deadline for shareholders — who had been approached directly by Mylan — passed at 8 a.m. EST on Friday, only 40% of shares had been tendered. 

 

Mylan said that none of the shares tendered would be accepted and would be returned to shareholders, while Perrigo said it would immediately begin its $2 billion repurchase of shares — $5000 million worth of which it plans to complete by year’s end. 

 

Mylan’s executive chairman Robert Coury, said that the acquisition was overall inessential to the company’s long-term strategy. 

 

“As we have said all along, Mylan viewed Perrigo as a unique and exciting opportunity, but not one that was required for the future success of our company,” he said. “With one of the strongest balance sheets in our industry …. we are well-positioned to quickly execute on the next strategic, value-enhancing opportunities for our business, some of which we have already identified. a

 

Perrigo, for its part, expressed optimism about its future as an independent company, reiterating its long-held stance that Mylan’s $26 billion offer did not properly value the company. 

 

“We have said all along that this offer from Mylan was a bad deal for our shareholders, as it significantly undervalued our durable business model and industry-leading future growth prospects,” Perrigo chairman and CEO Joseph Papa said. “Strong organic growth, a disciplined approach to M&A, and transparent, accessible corporate governance policies are the foundation of our successful business strategy. I am delighted that Perrigo shareholders voiced their clear support for this management team and our long-term strategy.”