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Shareholders of drugmaker Perrigo reject Mylan’s hostile bid

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Staff Report
Published Nov. 16, 2015

Shareholders of Perrigo Company PLC have voted down a $26 billion hostile tender offer by rival drugmaker Mylan. Dublin, Ireland-based Perrigo is seeking a buyer for its 400-employee plant in Greenville. Shareholders holding more than 60% of the outstanding shares voted against Mylan’s offer by the Friday deadline.

The statement said Perrigo would start its previously announced $2 billion repurchase of shares and “plans to complete $500 million of the planned repurchase by the end of 2015.” Morgan Stanley & Co. LLC, acting through its affiliate Morgan Stanley & Co. International PLC, is serving as financial adviser, and Wachtell, Lipton, Rosen & Katz and A&L Goodbody are acting as legal advisers to Perrigo.

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Perrigo Chairman and CEO Joseph C. Papa said in a statement that the offer from Netherlands-based Mylan “was a bad deal for our shareholders, as it significantly undervalued our durable business model and industry-leading future growth prospects.”

Perrigo had also criticized Mylan’s corporate governance.

The statement does not address the future of the 31-year-old vitamin, minerals and nutritional supplement plant in Greenville. The company previously said it intends to “find an optimal buyer for the (vitamin, mineral and supplement) business to ensure its continuity and growth for our customers and employees. Until the sale of the business is completed and a buyer assumes control, the business will operate as usual.”

Papa said that with the Mylan offer out of the way Perrigo looks “forward to continuing to create significant value for our shareholders.”

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