Business in Brief: Perrigo Shares Surge After Takeover Report

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Outgo9ing Perrigo CEO Joseph Pappa.
Outgoing Perrigo CEO Joseph Pappa.Credit: Ofer Vakhnin

Perrigo shares surge after takeover report

Shares of Perrigo, a U.S. maker of generic and over-the-counter drugs traded on the Tel Aviv Stock Exchange, rose as much as 16% yesterday after a report it was nearing a deal to be acquired for about $20 billion by an unidentified British firm., the financial news website that reported the story, said Perrigo was being advised by Morgan Stanley. IBI Israel Brokerage & Investments said the likely buyer was Reckitt Benckiser. A Perrigo spokeswoman declined to comment. Perrigo, which has extensive operations in Israel, successfully fought off a takeover bid by Mylan last year, telling investors it had better prospects as a stand-alone company. But since then it has struggled as its long-serving CEO Joseph Pappa resigned in April, it was forced to write down the value of its acquisition of Belgium’s Omega Pharmaceuticals and its earnings disappointed the markets. Shares of Perrigo ended well off their highs, closing up 4.8% at 405.70 shekels ($104.70) in Tel Aviv. (TheMarker)

Harel in real-estate tie-up with Jared Kushner

Jared Kushner, scion of a leading New York real estate family and Donald Trump’s son-in-law, is teaming up with Israel’s Harel Insurance & Finance to invest in U.S. real estate, TheMarker has learned. The two recently took a $50 million bridge loan together to help finance a 400-unit residential project in Brooklyn. The partnership is part of Harel’s strategy of stepping up investment in foreign real estate and create a steady, reliable income stream for its clients. Most of its $1.5 billion in real estate assets is invested in the United States. Kushner held talks with Yizthak Tshuva two years ago to buy control of Delek Group’s Phoenix insurance, but the talks never led to an agreement. The Kushner family owns some 20,000 apartments as well as commercial, industrial and office space. Last year it bought half of the retail space in the former New York Times building in Times Square from Africa Israel Investments. (Michael Rochvarger)

Tel Aviv tracks European bourses higher

Tel Aviv shares ended a four-day run lower yesterday as European markets ended their losing streak and Perrigo shares rallied. The TA-25 and TA-100 shares both ended about 0.7% higher at 1,420,30 and 1,235.03 points, respectively, on turnover of 1.55 billion shekels ($402 million). Compugen led TA-100 shares higher on a 7.7% advance to 25.46, although most biotech shares were lower for the day. Nice Systems advanced 1.2% to 237.40 in heavy trading while Energex celebrated its first day as a TA-100 stock with a 3.35% gain to 2.84. El Al Airlines finished up 3.1% at 2.50 shekels. Mobile providers were lower, with Cellcom Israel down 2.2% at 26.11 and Partner Communications losing 2.1% to 17.95. Opko Health rose 1.6% to 35.80, a day after it said it was moving its U.S. listing to the Nasdaq from The New York Stock Exchange. Mannkind led TA-100 stocks lower, falling 6.1% to 3.85. (Shelly Appelberg)