New York - Generic drug company Mylan increased its offer for over-the-counter giant Perrigo Friday, days after Israel's Teva attempted to head off that deal with its own bid for Mylan.
Mylan made a formal offer for Perrigo of $60 a share plus 2.2 Mylan shares for each Perrigo share, worth about $222 dollars each or at least $31 billion in total.
That was well above its informal $205 a share bid on April 8, which was rejected Tuesday by Perrigo's board as too low, undervaluing its growth prospects.
Perrigo shares, which surged on Wednesday after the rejection, fell following the fresh Mylan offer Friday, losing 2.5 percent at $196.69 in morning trade.
Perrigo's rejection Tuesday had come just hours after Teva, the generics giant, had made a $40.1 billion bid for Mylan.
Mylan's board has not commented on the Teva move, but Friday's formal Perrigo offer signaled a rejection of that bid, which Teva said would go ahead only if Mylan dropped its pursuit of Perrigo.
A Mylan-Perrigo tie-up would create a company with more than $15 billion in annual sales, Mylan said, and generate $800 million in annual savings from operational synergies.
Mylan said it was "disappointed" that Perrigo had not accepted to discuss its offer.
"Mylan has repeatedly offered to have a constructive dialogue with Perrigo on the proposal, but Perrigo has refused," the company said in its offer.
"Nonetheless, Mylan believes that a combination of Mylan and Perrigo offers clear and compelling strategic and financial benefits to shareholders and other stakeholders of both companies. Mylan therefore remains committed to completing this transaction."
Mylan shares rose 2.8 percent to $75.74 while Teva was up 1.0 percent at $63.89.
AFP
