Perrigo CEO changes tune, would consider Mylan merger—at right price
- Joseph Papa, CEO of Perrigo, said that Mylan's latest offer to buy his company at $32.7 billion is still way too low. However, Papa indicated at an investor meeting hosted by UBS AG that he'd be willing to come to the table for the right price, Bloomberg reports.
- The latest bid, however, is much higher than the offer from April 8, which was $29 billion.
- Mylan has already stated its intentions to go directly to Perrigo's shareholders in a hostile bid—which could happen by September 14.
The larger context for the latest offer is that as Mylan pursues Perrigo, which is based in Ireland, Teva is pursuing Mylan. While Perrigo and Mylan are willing to negotiate, or at least stay involved in discussions, Mylan has flat-out refused to consider any type of merger with or acquisition by Teva.
And at the same time that Myan is finding way to sweeten the deal for Perrigo, the company is also answering questions from the FTC related to potential antitrust complications of a merger between Perrigo and Mylan, which would result in a generics company with $15 billion in annual revenues, based on 2014 sales.
Perrigo shares were up 2% on the news of more talks, while Mylan's shares were up 1%.
- Bloomberg Business Perrigo CEO Is Ready to Talk Deal With Mylan at Right Price