- Two-thirds of votes cast were in favor of pursuing takeover
- Tender offer for Perrigo shares must be initiated by Sept. 14
Mylan NV’s shareholders voted in favor of moving forward with a $33 billion hostile bid for over-the-counter drugmaker Perrigo Co., putting the fate of the deal in Perrigo investors’ hands.
The proposal gained the support of two-thirds of votes cast, representing more than half of all outstanding shares, Mylan said in a statement on Friday. Mylan will take its formal offer directly to Perrigo shareholders in “coming weeks,” Mylan Chairman Robert J. Coury said.
Mylan now has until Sept. 14 to initiate the process for acquiring Perrigo, whose management is opposed to the deal and has called the proposal value-destructive.
"We are confident that the majority of Perrigo shareholders will not tender their shares to Mylan," Perrigo Chief Executive Officer Joe Papa said in a statement. "We will continue to create superior value well in excess of Mylan’s offer, and with less risk."
Perrigo shares rose 1 percent to $190 in early trading. Mylan shares climbed 0.9 percent to $51.97.
Mylan initially argued the Perrigo deal was a better alternative than accepting a takeover offer from Teva Pharmaceutical Industries Ltd. Teva has since walked away from doing a deal with Mylan in favor of buying Allergan Plc’s generics business. Mylan remained steadfast in its pursuit of Perrigo, raising its bid over the past five months and persisting in the face of public opposition from Perrigo’s executives.
Perrigo makes prescription and over-the-counter drugs that Mylan is seeking to add to its lineup. About half of Perrigo’s $4.06 billion in revenue last year came from its consumer health-care division, including store-brand versions of popular medicine like Sudafed and NyQuil, sold in retailers such as Wal-Mart and Walgreens.
Mylan said earlier this month it will proceed with the acquisition as long as at least 50 percent of Perrigo shares are tendered, down from an earlier threshold of 80 percent. Based in Hertfordshire, England, Mylan has operational headquarters in Canonsburg, Pennsylvania.