Perrigo rejects Mylan’s takeover bid, saying it undervalues the company

Ireland-headquartered drugmaker Perrigo (NYSE: PRGO) has issued a statement rejecting the unsolicited takeover attempt from Netherlands-headquartered generics major Mylan (Nasdaq: MYL), confirming the view of analysts when the offer was made, that Mylan will have to dig deeper into its pockets if a deal is to be struck.

Perrigo says its board of directors has studied Mylan’s proposal to acquire all of the outstanding shares of Perrigo for $205.00 per share, or around $28.9 billion in total, and has unanimously concluded that this substantially undervalues the company and its future growth prospects and is not in the best interests of Perrigo's shareholders. Perrigo shares fell 2.7% to $192.82 after the announcement on Tuesday.

The news comes hot on the heels of a $40 billion bid for Mylan from Israel’s Teva Pharmaceutical Industries (NYSE: TEVA), also unsolicited, that, commented on speculation before the formal offer was announced, Mylan has said it was fully committed to independence and the acquisition of Perrigo, and warned that such a deal would not obtain antitrust regulatory approvals.