Time is running out on Mylan NV’s hostile bid for Perrigo Co., and investors are still uncertain whether the deal will go through. The spread between the offer price and share price has risen in recent weeks, suggesting that investors are growing more skeptical that generic-drug maker Mylan will seal the deal for Perrigo, which makes over-the-counter medicine.
Perrigo investors have until 8 a.m. New York time Friday to tender their shares for the offer of 2.3 Mylan shares and $75 in cash -- an offer valued at $176.41 a share as of 10:54 a.m. in New York. Perrigo shares were trading $12.42 below that, or 7 percent.
Investor uncertainty has been mounting since the spread’s low of $4.03 in August, when Mylan’s board unanimously recommended the deal and key investors announced their support. The suitor has pursued its competitor for more than seven months since it made its initial $28.9 billion, unsolicited bid.
The Wall Street Journal reported that Mylan is expected to fall short of the 50 percent threshold needed to take control of Perrigo, citing people familiar with the matter. A minority of Perrigo shareholders tendered their stock into Mylan’s proposal by late Thursday night, according to the WSJ. Representatives of both companies couldn’t immediately be reached for comment.