Mylan's $29B Perrigo bid seen as defensive play against M&A threat
- Several analysts suspect that Mylan's $29 billion takeover bid of Perrigo was meant, in part, to defend against a Teva takeover, FiercePharma reports.
- Last Friday, Mylan put a poison pill plan into place.
- Onlookers speculate that there is behind-the-scence M&A-related activity among generics companies, however, it's not clear how it's going to play out.
Umer Raffat, an analyst at Evercore ISI, says that there was definitely a bid in the works for Mylan. Clearly, however, Mylan's $205-dollar-per-share preemptive bid for Ireland-based Perrigo may have stalled that process.
While the general thinking is that a merger between two powerhouse generics companies like Mylan and Teva would lead to positive economies of scale, according to BMO analysts David Maris, there would most likely be antitrust and tax obstacles that would be challenging and possibly make the deal "implausible."
Regardless, Mylan's bid for Perrigo stands and the per-share buy-out bid price could rise as high as $215-per-share, according to onlookers.