Mylan fails in US$26bn hostile takeover bid for Perrigo

Not enough shareholders supported the deal

Mylan's hostile US$26bn takeover offer for Perrigo has failed after the Netherlands-based company did not persuade enough shareholders to back the deal.

Mylan said just 40% of Perrigo's outstanding ordinary shares were tendered, well short of the required 50% it needed to take control of the company.

The tendered shares will now be returned, Perrigo said.

The bid's failure ends a nearly seven-month battle between the generic drugmakers.

Mylan's Executive Chairman Robert Coury said the firm saw Perrigo as a 'unique and exciting opportunity, but not one that was required for the future success of our company'.

Coury hinted that the company would now pursue other acquisitions.

'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.

Mylan CEO Heather Bresch said: 'Our recent financial results continue to demonstrate the power of our standalone platform, with double digit-growth in our legacy business, as well as enhanced double-digit growth from the EPD business. With favourable dynamics for our EpiPen Auto-Injector asset, along with promising future launches, the outlook for 2016 is very strong.'

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

Teva also pursued the firm, making an unsolicited $40.1bn cash and shares bid, but the Israeli generics company eventually abandoned its offer, opting instead to buy Allergan's generic drugs business for $41bn.

Perrigo said its shareholders had expressed confidence in Perrigo's 'long-term strategy, vision, and management plans for the future'.

Joseph C. Papa, Perrigo Chairman and CEO, commented: 'We have said all along that this offer from Mylan was a bad deal for our shareholders, as it significantly undervalued our durable business model and industry-leading future growth prospects. Strong organic growth, a disciplined approach to M&A, and transparent, accessible corporate governance policies are the foundation of our successful business strategy. I am delighted that Perrigo shareholders voiced their clear support for this management team and our long-term strategy.'

Papa added: 'Now that the Mylan tender offer is behind us, we look forward to continuing to create significant value for our shareholders. Our confidence in Perrigo's compelling near- and longer-term growth prospects and our steadfast commitment to delivering returns to shareholders remain unchanged.'

Perrigo will immediately commence its previously announced $2bn repurchase of Perrigo shares and plans to complete $500m of this by the end of the year.

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