Mylan's Hostile $26 Billion Bid for Fellow Drugmaker Perrigo Fails

Pharma major Mylan fails to convince half of Perrigo's shareholders to sell their shares.

Hadar Cohen

REUTERS - Mylan NV's $26 billion hostile bid for Perrigo Co Plc collapsed on Friday after the Netherlands-based company failed to convince at least half of Perrigo's shareholders to tender their shares.

With the deadline for the offer expiring at 8 A.M. ET, Mylan said just 40 percent of Perrigo's outstanding shares had been tendered, short of the required 50 percent.

The tendered shares will now be returned, Mylan said.

The failure ends nearly seven months of bitter wrangling between the generic drugmakers, and hands a big victory to Perrigo Chief Executive Joseph Papa.

Mylan Executive Chairman Robert Coury, who snubbed an takeover offer from Teva Pharmaceutical Industries Ltd (TEVA.TA) to pursue Perrigo, said the company was ready to move on.

"We are well-positioned to quickly execute on the next strategic, value-enhancing opportunities for our business, some of which we have already identified," he said in a statement.

Mylan shares were up about 10 percent at $47.39 in premarket trading, while Perrigo's were down 9.3 percent at $141.99.

Mylan made its first public offer for Dublin-based Perrigo in April and pursued a hostile takeover when it was rejected.

Mylan's offer of $75 plus 2.3 Mylan shares was worth about $174.36 per share, based on Mylan's Thursday close of $43.20, or about $26 billion for all outstanding Perrigo shares.

Perrigo trades on the Tel Aviv Stock Exchange and is listed in the TA-25 and TA-75 indices. It has operations in Israel.