Perrigo Company plc Ordinary Shares (PRGO) Stays Hostile In Mylan NV (MYL)’s Bid
The war of words between Perrigo Company plc Ordinary Shares (NYSE:PRGO) and Mylan NV (NASDAQ:MYL) appears to be heating up as the blame game starts. Mylan continues to show interest in the British firm while the latter remains hostile to the overtures. The fight between the two companies reminds of Pfizer Inc. (NYSE:PFE)’s bid to acquire AstraZeneca plc (ADR) (NYSE:AZN) more than a year ago.
Threat of Delisting
The latest accusation from Perrigo Company plc Ordinary Shares (NYSE:PRGO) against Mylan NV (NASDAQ:MYL) is that the latter is threatening to delist its share from all the stock exchanges. That is irrespective of the fact that 49% of the company’s shareholders preferring to say no to the delist offer. The accusation came from none other than the President and CEO, Joseph Papa.
The Britain Company’s CEO, Papa, also accused Mylan of further troubling the corporate governance values by pursuing its acquisition desire. He cited the example of the decision to cut the acceptance condition to 50+% of its outstanding share from the earlier 80% level. He said that the move created the possibility that Mylan will not be able to deliver the anticipated synergies.
When a company engages in a hostile bid to acquire another, it is but natural that there are accusations and counter-accusations and clarifications. Sometimes, it leads to mudslinging campaign to break all hells. Predictably, Mylan NV (NASDAQ:MYL) dismissed the charges of Papa and that its statement was misleading.
The Irish firm’s Executive Chairman, Robert Coury, said that the company is confident of acquiring Perrigo Company plc Ordinary Shares (NYSE:PRGO). That is part of its agenda to deliver strong performance, as well as, creating value for both the companies, shareholders and other stakeholders. He also charged Papa of violating some panel rules in issuing a misleading statement and creating uncertainty in the market.
Lowering Acceptance Condition
While Papa accused Mylan of coercing its shareholders in tendering their shares by lowering the threshold, the Irish firm not only denied the charge but also said that there will not be any issue in achieving synergies. Coury pointed out that the company has run other firms with similar terms and conditions. Papa’s charge was that lowering acceptance condition was to ensure that shareholders should not be feeling in the minority.
A proxy firm, Mosiac LLC, said that Mylan NV (NASDAQ:MYL)’s decision created a wider range of options. The proxy firm said that the condition has the probability to frustrate any future moves to consolidate the two firms. Mylan offered to buy Perrigo Company plc Ordinary Shares (NYSE:PRGO) for approximately $35.1 billion. Predictably, the Britain company rejected the bid saying it undervalued the firm.
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