BFW 05/11 22:58 Mylan Chairman Said to Consider Perrigo Sweeteners to Make Deal
Mylan Chairman Said to Consider Perrigo Sweeteners to Make Deal
2015-05-11 22:54:00.127 GMT
By Cynthia Koons and Jeffrey McCracken
(Bloomberg) -- Mylan NV’s chairman told investors he may
sweeten the company’s cash-and-stock offer for Perrigo Co. by
adding terms to reduce the risk to its shareholders, said people
who recently met with him.
In private meetings with investors, Mylan Executive
Chairman Robert Coury was adamant that Mylan won’t be bought by
Teva Pharmaceutical Industries Ltd., which has made an
unsolicited bid for Mylan. Teva’s offer for Mylan is contingent
on Mylan dropping its bid for Perrigo.
Instead, Coury laid out other scenarios that could play
out, according to the people, who asked not to be named because
the meetings were private. In one possibility, Coury suggested a
Mylan-Perrigo combination would be an attractive future target
for Pfizer Inc., and that Pfizer could use a deal to move its
legal address abroad and lower its tax rate.
Perrigo has rejected Mylan’s most recent offer of $75 in
cash and 2.3 Mylan shares for each Perrigo share. Coury said
Mylan could add payments to Perrigo in the event a deal fell
apart, or include other sweeteners to reduce the risk to Perrigo
shareholders, said the people.
Mylan spokeswoman Nina Devlin declined to comment on the
meetings. Representatives for Teva and Perrigo didn’t
immediately respond to requests for comment, and Pfizer declined
to comment.
Mylan, a generic drugmaker, has made two unsolicited
takeover overtures for Perrigo, which generates about half of
its sales from consumer health-care products. Perrigo has
rejected those offers.
Teva, meanwhile, has made a $40.1 billion offer to buy
Mylan. Mylan has rejected that as well, calling it a bad
cultural fit that couldn’t get cleared by U.S. antitrust
regulators.
Why Not Novartis
At the meetings with investors, Coury also brought up the
idea that Mylan could eventually make a deal with Novartis AG’s
generic business Sandoz, the people said. One possibility raised
was Mylan buying Sandoz in exchange for a stock stake in Mylan,
said one of the people.
Novartis declined to comment.
Mylan’s rejections of Teva have been firm. In a public
letter on April 27, Mylan said Teva’s opening offer of $82 a
share “grossly undervalues” the company and that the Israeli
drugmaker shouldn’t even bother coming back until it’s prepared
to pay “significantly in excess of $100 per share.”
Teva responded with a letter of its own, asking Coury to
quit the “mudslinging.”
For Related News and Information:
Today’s most read health-care stories: MNI HEA <GO>
Bloomberg Intelligence Pharmaceuticals dashboard: BI PHRM <GO>
Bloomberg Intelligence Biotechnology dashboard: BI BIOT <GO>
S&P’s Pharmaceuticals Index: S5PHAR <INDEX> MRR 10 <GO>
Top health news: HTOP <GO>
Top Bloomberg news: N <GO>
To contact the reporters on this story:
Cynthia Koons in New York at +1-212-617-5253 or
ckoons@bloomberg.net;
Jeffrey McCracken in New York at +1-212-617-8517 or
jmccracken3@bloomberg.net
To contact the editors responsible for this story:
Crayton Harrison at +1-212-617-6145 or
tharrison5@bloomberg.net
Drew Armstrong
2015-05-11 22:54:00.127 GMT
By Cynthia Koons and Jeffrey McCracken
(Bloomberg) -- Mylan NV’s chairman told investors he may
sweeten the company’s cash-and-stock offer for Perrigo Co. by
adding terms to reduce the risk to its shareholders, said people
who recently met with him.
In private meetings with investors, Mylan Executive
Chairman Robert Coury was adamant that Mylan won’t be bought by
Teva Pharmaceutical Industries Ltd., which has made an
unsolicited bid for Mylan. Teva’s offer for Mylan is contingent
on Mylan dropping its bid for Perrigo.
Instead, Coury laid out other scenarios that could play
out, according to the people, who asked not to be named because
the meetings were private. In one possibility, Coury suggested a
Mylan-Perrigo combination would be an attractive future target
for Pfizer Inc., and that Pfizer could use a deal to move its
legal address abroad and lower its tax rate.
Perrigo has rejected Mylan’s most recent offer of $75 in
cash and 2.3 Mylan shares for each Perrigo share. Coury said
Mylan could add payments to Perrigo in the event a deal fell
apart, or include other sweeteners to reduce the risk to Perrigo
shareholders, said the people.
Mylan spokeswoman Nina Devlin declined to comment on the
meetings. Representatives for Teva and Perrigo didn’t
immediately respond to requests for comment, and Pfizer declined
to comment.
Mylan, a generic drugmaker, has made two unsolicited
takeover overtures for Perrigo, which generates about half of
its sales from consumer health-care products. Perrigo has
rejected those offers.
Teva, meanwhile, has made a $40.1 billion offer to buy
Mylan. Mylan has rejected that as well, calling it a bad
cultural fit that couldn’t get cleared by U.S. antitrust
regulators.
Why Not Novartis
At the meetings with investors, Coury also brought up the
idea that Mylan could eventually make a deal with Novartis AG’s
generic business Sandoz, the people said. One possibility raised
was Mylan buying Sandoz in exchange for a stock stake in Mylan,
said one of the people.
Novartis declined to comment.
Mylan’s rejections of Teva have been firm. In a public
letter on April 27, Mylan said Teva’s opening offer of $82 a
share “grossly undervalues” the company and that the Israeli
drugmaker shouldn’t even bother coming back until it’s prepared
to pay “significantly in excess of $100 per share.”
Teva responded with a letter of its own, asking Coury to
quit the “mudslinging.”
For Related News and Information:
Today’s most read health-care stories: MNI HEA <GO>
Bloomberg Intelligence Pharmaceuticals dashboard: BI PHRM <GO>
Bloomberg Intelligence Biotechnology dashboard: BI BIOT <GO>
S&P’s Pharmaceuticals Index: S5PHAR <INDEX> MRR 10 <GO>
Top health news: HTOP <GO>
Top Bloomberg news: N <GO>
To contact the reporters on this story:
Cynthia Koons in New York at +1-212-617-5253 or
ckoons@bloomberg.net;
Jeffrey McCracken in New York at +1-212-617-8517 or
jmccracken3@bloomberg.net
To contact the editors responsible for this story:
Crayton Harrison at +1-212-617-6145 or
tharrison5@bloomberg.net
Drew Armstrong