The Ticker / Mylan Launches Perrigo Takeover Bid

Ability Computers to join Nasdaq through merger; New York property developer JDS delays planned bond issue again.

Bloomberg News

Mylan launches Perrigo takeover bid

The U.S. drug maker Mylan said yesterday it would commence its hostile takeover bid for Perrigo on September 14, offering Perrigo shareholders $75 in cash and 2.3 Mylan ordinary shares for each Perrigo ordinary share. The offer comes after Perrigo, a maker of generic over-the-counter drugs whose shares are traded in New York and Tel Aviv, rejected the Mylan terms. But Mylan shareholders gave management the go-ahead August 28. “It always has been Mylan’s preference to accomplish the Mylan-Perrigo combination in a cooperative and negotiated manner. It is now time for us to move forward and take our offer directly to your shareholders,” Mylan Executive Chairman Robert Coury said in a letter to Perrigo CEO Joseph Papa. Perrigo management and many analysts have expressed concern that Mylan may fail to buy the 80% of Perrigo shares it needs to compete a full takeover but garner the 50% it needs to control the company, leaving Perrigo in limbo. The offer expires November 13. Perrigo shares ended 0.5% higher at 707.40 shekels ($181). (TheMarker)

Ability Computers to join Nasdaq through merger

Ability Computers & Software Industries, whose communications intelligence technology is used by governments for surveillance and cybersecurity, will begin trading on the Nasdaq through a merger with the shell company Cambridge Acquisition Corporation. Shareholders of the closely held Israeli company $173.4 million of Cambridge stock and $18 million in cash, valuing Ability at about $192 million. The shareholders have a chance to get an additional 8.45 million shares if the newly merged company meets net income performance targets over the next four years. But shareholders will not be able to sell their stock for two years, under the terms of the merger with Cambridge, which had an initial public offering nearly two years ago to raise money to invest in other companies. “Even after the two years when we’re blocked from selling the stock, we don’t plan to sell. Our aim is to continue growing the company. We don’t plan an exit,” Ability CEO Anatoly Hurgin told TheMarker. (Eran Azran)

New York property developer JDS delays planned bond issue again

JDS Development Group, a New York real estate company led by Michael Stern, is still determined to go ahead with a $60 million bond issue in Tel Aviv but is putting off the sale until after the High Holy Days. Sources said yesterday that JDS, which published its initial prospectus in May, didn’t need the capital right now because it had succeeded in financing a development through other sources. They said the company would publish a new prospectus — its third — in October, but its low credit rating could mean JDS isn’t wining the interest of institutional investors that are the prime customers for the debt. In May, JDS received a preliminary BBB rating from S&P Maalot for a bond issue of up to 240 million shekels ($61.4 million). JDS has a portfolio of seven million square meters of building in development in New York and Miami. (Eran Azran)

Tel Aviv shares end higher in heavy trading

Tel Aviv shares ended broadly higher in heavy trading yesterday, with insurers pacing the market. The benchmark TA-25 index ended 0.4% up at 1,608.04 points, while the TA-100 added 0.7% to 1,403.65. Turnover was 2.1 billion shekels ($540 million). Africa Israel rose 6.3% to a 2.72-shekel finish and Melisron added 1.1% to 154.80 after the two said they had paid 538 million shekels for a large building lot in Tel Aviv’s Sarona area, for a major office tower. TowerJazz extended Monday’s gains to add 2% to 52.44 shekels. Harel led insurance companies higher with a 3.4% advance to 17.45 while Clal Insurance added 2.2% to 62.47.  Opko Healthcare led decliners on the TA-100, losing 2.5% to 41.40 shekels. In the fixed-income market, the government’s 10-year shekel bond fell 0.38% to a yield of 2.32%. (Shelly Appelberg)