UPDATE: Mylan officially takes $27B hostile bid to Perrigo shareholders
UPDATE: Mylan on Monday officially took its $27.1 billion hostile bid to Perrigo's shareholders, bypassing the company's board.
Perrigo shareholders will have until November 13 to make a decision regarding the offer, after when the bid will expire. For its part, Perrigo's board has said that it will make a recommendation about the offer within 10 days and is asking its shareholders to hold off on making any decisions on the bid.
- On September 14, Mylan will officially offer Perrigo's shareholders $27.1 billion to take acquire the company, bypassing the latter firm's board and launching a hostile bid.
- For each share of Perrigo, Mylan will offer $75 in cash, and 2.3 Mylan shares per Perrigo share.
- Under the structure of the deal, Perrigo shares would be valued at $185.52 per share, based on Friday's closing price. Perrigo's shares are currently valued at $178.80.
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.
Now, all bets are off for Mylan, which is purusing 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.
All told, the size of the generics market is roughly $70 billion—and growing. Mylan is positioning itself to become a major mover and shaker in that market by acquiring and integrating all of Perrigo's OTC and Rx products into its line-up.
But for now, the decision is in the hands of the Perrigo's shareholders.