Mylan Takes Buyout Offer For Perrigo Directly To Shareholders

By Tomi KilgoreMarketWatch Pulse

Mylan N.V. said it has officially launched its offer to buy all of Perrigo Co. PLC's outstanding shares in a deal that values the Ireland-based healthcare supplier at about $27.3 billion. As part of the deal, Mylan will offer $75 in cash plus 2.3 of its shares for each Perrigo share outstanding. Based on Mylan's stock's closing price of $48.65 on Friday, the per-share bid is valued at $186.895. Perrigo has about 146.28 million shares outstanding, according to FactSet. The offer to buy the shares will expire Nov. 13. If the merger is completed, Perrigo shareholders will own 40% of the combined company. "With the overwhelming support of Mylan shareholders, today we officially are taking our offer directly to the Perrigo shareholders," said Mylan Executive Chairman Robert Coury. "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." Perrigo's management has rebuffed Mylan's previous merger offers, saying the price was too low. Mylan and Perrigo shares were still inactive in premarket trade. Mylan's stock has tumbled 34% over the past three months, while Perrigo's has slipped 2.7% and the S&P 500 has lost 6.4%.

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