DUBLIN: Directors at Perrigo Co. plc rejected a buyout offer from London-based Mylan N.V., citing the company’s own growth potential through product development and from business related to past and future acquisitions, MiBiz reported. Perrigo Chairman and CEO Joe Papa announced the action during a conference call to discuss Perrigo’s quarterly results.
Mylan’s offer was $28.9 billion or $82 a share.
The board concluded that the proposal substantially undervalues the company and its future growth prospects and it is not in the best interest of Perrigo’s shareholders,” Papa said. “Simply put, the board believes that a continued execution by the management team against our existing global growth strategy will deliver superior shareholder value.”
Perrigo has grown rapidly in recent years through a series of acquisitions. The Mylan offer came after two major deals. On March 30, Perrigo closed on a $4.5 billion cash, debt and stock deal for Belgium-based Omega Pharma NV, Europe’s fifth-largest producer in the continent’s $30 billion over-the-counter market.
In December 2013, Perrigo acquired Dublin, Ireland-based Elan Corp. for $8.6 billion. The acquisition allowed Perrigo, formerly based in Allegan north of Kalamazoo, to claim Ireland as its headquarters along with a lower corporate tax rate.
