Mylan (MYL) has launched a hostile takeover of drugmaker Perrigo (PRGO) and it will be up to investors to decide the winner.
- Mylan is offering about $26 billion for Perrigo, which is a 9% premium on PRGO stock.
- Perrigo is offering investors cost cuts and share buybacks to counter MYL’s offer.
- Investor’s will vote to see if Mylan’s takeover is a success.
- Irish takeover laws prevent Mylan from changing the deal last minute to spur negotiations with Perrigo.
- Hostile takeovers don’t happend much anymore, making this situation a rare occurrence.
- MYL is expecting its offer to draw in hedge funds, which have a 20% to 25% stake in PRGO.
- PRGO is expecting investors from Israel, who have a 12% stake in the company, to take its side.
- The winner of the hostile takeover effort will be revealed this Friday.
To learn more about the hostile takeover bid from MYL for PRGO, click here.
“This is a bad deal,” Art Shannon, the vice president of investor relations and global communications at Perrigo told MLive.com about the MYL offer. “Every investor that we talked to does not want to tender into the deal. They don’t like it. They know it’s a bad deal.”
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