Perrigo rejects Mylan's improved $35.6bn takeover offer

Irish drug group Perrigo has rejected an improved $35.6bn takeover offer from US rival Mylan.

The Dublin-headquartered cough syrup maker said the unsolicited bid "continues to propose a price lower than the previously rejected proposal", referring to the fact that Mylan's recent cash-and-shares offers had been inflated by its pursuit by fellow drugmaker Teva Pharmaceuticals.

Earlier on Wednesday, Pittsburgh- and Potters Bar-based Mylan had upped its offer from the $33bn bid it made last week.

Mylan's new offer is made up of $75 in cash and 2.3 of its shares for every one of New York-listed Perrigo's, which at its current price was worth $232.23 per Perrigo share.

Last week Mylan offered $60 cash and 2.2 shares apiece, which Perrigo also rejected as it "significantly undervalued the company and its future growth prospects and was not in the best interests of Perrigo's shareholders".

Robert J. Coury, executive chairman of Mylan, said on Wednesday that after having tabled the enhanced offer he hoped to meet Perrigo chief Joe Papa to "finalize" what he thought was a "truly compelling combination, which is a win-win for both Mylan and Perrigo shareholders and all other stakeholders".

He mentioned that Mylan, which itself recently rebuffed a takeover approach from Israeli pharmaceutical giant Teva, had already filed for US anti-trust clearance and secured firm committed financing for the offer.

"All of this, together with today's [increased offer], will result in a transaction that provides compelling value and maximum speed and certainty to Perrigo and its shareholders.

"Further, this is a transaction that can, and will, be completed and create a powerhouse company that will be an engine for growing shareholder and stakeholder value as Mylan has done consistently for many years."

Perrigo advised its shareholders to take no action in relation to the offer.