Mylan leaps as it bids near $29 billion to acquire Perrigo

Shares of US generics major Mylan (Nasdaq: MYL) leapt nearly 15% to $68.39 yesterday, after the company announced it has made an unsolicited $205 per share proposal to acquire Ireland-headquartered drugmaker Perrigo (NYSE: PRGO), sending the latter’s stock rocketing nearly 20% to $197.31 in late afternoon trading on Wednesday, and rising to $214 by close of trading.

Mylan has made a proposal, worth around $28.9 billion in total, to acquire Perrigo in a cash-and-stock transaction that would create a diversified, global pharmaceutical leader with an unmatched commercial and operating platform and a unique, one-of-a-kind profile. The combination of these highly complementary businesses would produce a company with critical mass in specialty brands, generics, over-the-counter (OTC) and nutritional products; a powerful commercial platform with reach across all customer channels; an exceptional high-quality operating platform; and opportunities to generate enhanced growth and deliver significant immediate and long-term value and benefits for shareholders and the other stakeholders of both companies, said Mylan.

25%-29% premium to Perrigo share price