Perrigo Rejects Revised offer From Mylan of $32.7 Billion

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By J Maslow

Perrigo Manufacturing lineMylan NV (NASDAQ:MYL) raised their offer to buy Perrigo (NYSE:PRGO) to $32.7 billion. The company offered to buy Perrigo with $75 in cash and 2.3 shares of stock for every share of Perrigo stock. While initial reports stated that Perrigo hadn’t made a decision on the offer, official news just released states that Perrigo has rejected the offer.

Mylan NV previously offered $60 and 2.2 shares to acquire the company last week.

Mylan states that the current offer is a 25 percent premium worth $232.23 a share. Perrigo states that the newest offer is an 8.5 percent premium with a value of $202.21 a share.

Teva Pharmaceutical Industries (NYSE:TEVA) is also a question mark for Mylan. Teva offered to buy Mylan for $40.1 billion last year and reaffirmed that the offer stands as long as Mylan does not acquire Perrigo. While Mylan has declined the offer, stating that the company is not a good cultural fit, the offer is still affecting the bid to take over Perrigo.

Perrigo states that Teva’s offer has inflated Mylan stock prices, which is ultimately why there is such a discrepancy in the premium value offered in the takeover bid. Perrigo states that the March 10th price of $55.31 a share for Mylan stock is more aligned with the true value of the stock instead of the current price of $73.40 a share.

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