Michigan governor urges Perrigo shareholders to reject Mylan deal
- Michigan Gov. Rick Snyder (R) is urging Perrigo shareholders to reject Mylan's takeover offer in a bid to maintain Perrigo's position as a "strong corporate citizen" in Michigan.
- Snyder cites Perrigo's economic role in Michigan as an employer, as well as the $2.4 million it pays in state taxes, in addition to $12 million in payroll taxes and $3 million in local property taxes in order to make his case.
- Snyder also cites all of the losses that would occur relating to the supply-chain in southwestern Michigan, which supports Perrigo. The company announced earnings on Thursday that beat profit forecasts.
Here's the backstory: In early April, Pennsylvania-based generic and specialty drug manufacturer Mylan made a $29 billion bid to purchase Ireland-based Perrigo. Later that month, Perrigo rejected the deal—for the third time. But Mylans is still pursuing acquisition of Perrigo with the goal of becoming a powerhouse generics company in direct competition with Teva, which bought Allergan's generics division in late July for $40.5 billion.
However, Governor Synder is weighing in on the matter and throwing his support behind the status quo with a powerful plea outlined in a press release, as well as on social media, encouraging shareholders to vote against the Mylan acquisition. The vote is expected to occur in early November.