Perrigo Issues Another Shareholder Letter as Mylan Takeover Bid Enters Home
Moreover, Perrigo CEO Joseph Papa also called Mylan’s proposal as inadequate and criticized its “poor” corporate governance practices as part of its defense against the drug maker’s $27 billion takeover effort.
Netherlands-based Mylan made an offer for Perrigo in April, which was rejected, and went hostile in September.
Mylan NV is reportedly undergoing a few management changes after the company’s acquisition of Perrigo Co.is completed. Perrigo opposes the deal and recommends shareholders to follow suit.
Mylan used this technique to block a $40 billion acquisition attempt by Teva Pharmaceutical Industries Ltd. earlier this year.
The FTC announced the settlement yesterday, months after the agency alleged that Mylan’s proposed purchase was likely to harm competition in the USA for the seven generic drugs.
The drugs to be sold include bromocriptine mesylate (diabetes and Parkinson’s disease), clindamycin phosphate/benzoyl peroxide (acne), liothyronine sodium (thyroid ailments) polyethylene glycol 3350 (a laxative), acyclovir (herpes), hydromorphone hydrochloride (pain), scopolamine (nausea).
Mylan’s Executive Chairman Robert Coury, however, said that he was very confident that Perrigo shareholders would side with them. Mylan officially commenced its formal offer to acquire all outstanding ordinary shares of Perrigo on September 14. The offer and withdrawal rights are scheduled to expire at 1:00 P.M. (Irish time)/8:00 A.M. (New York City time) on November 13, 2015, unless the offer is extended with the consent of the Irish Takeover Panel.
Headquartered in Ireland, Perrigo manufactures over-the-counter products and supplies infant formulas for the store brand market.
Perrigo is also listed on the TASE, and both companies have been courting Perrigo shareholders in Israel – Perrigo to persuade them to resist the deal, Mylan to persuade them to tender their shares.
Perrigo has also questioned Mylan’s assertion that the combined company could achieve $800 million in annual cost reductions or synergies and complained about Mylan’s plan to operate Perrigo as a separate subsidiary if more than 50% but less than 80% of shareholders approve the deal.