Court Says Mylan Can Uphold Perrigo Bid
A federal district court judge in New York has ruled that Mylan can continue its hostile takeover bid for Perrigo. In the case heard by the court, Perrigo claimed Mylan had made false statements by saying it expects the merged companies to see at least $800 million in pretax revenues by the end of the fourth year. However, Judge Naomi Reice Buchwald ruled that Mylan had conducted a “sound process” in devising the estimate.
Mylan has offered $75 in cash and 2.3 ordinary shares for each Perrigo ordinary share. As of September, the deal was valued at $27 billion. The Netherlands-headquartered drugmaker will be able to move forward with the acquisition if the majority of Perrigo shareholders tender their shares by Nov.13. Perrigo said it does not plan to appeal the ruling.
