- Papa to recommend Perrigo's standalone strategy to investors
- Israeli shareholders jointly own about 10 percent of Perrigo
Perrigo Co.’s top executives arrive in Israel today for meetings with investors as they seek to fend off a hostile takeover bid from Mylan NV, according to a person familiar with the matter.
Chief Executive Officer Joseph Papa and Chief Financial Officer Judy Brown will meet with Israel’s largest institutional investors, which together hold more than 10 percent of Perrigo, the person said, asking not to be identified because the matter is confidential.
Papa will make the case that Perrigo’s standalone strategy, which includes plans to cut 800 jobs and buy back $2 billion of shares to boost returns for investors, is better than combining operations with generic drug-maker Mylan, the person said. A Perrigo spokesman declined to comment about the visit.
Papa has repeatedly rejected Mylan’s $27.1 billion offer to acquire Perrigo, which makes over-the-counter and generic drugs, as inadequate. Mylan took its proposal directly to shareholders on Sept. 14, offering $75 in cash and 2.3 Mylan shares for each Perrigo share. The bid exposes its investors to “significant financial risks” as well as to Mylan’s “troubling corporate governance,” Perrigo said a few days later.
In Papa’s visit, Perrigo is also expected to pledge commitment to staff in Israel, where it has more than 1,000 employees, the person said.
Perrigo listed in Tel Aviv after a 2005 acquisition in Israel. To lure Israeli shareholders, Mylan is also seeking to list in Israel.