Mylan Gets Nod to List Stock in Tel Aviv to Lure Perrigoby
A listing in Tel Aviv could help Mylan persuade some of Perrigo’s Israel-based shareholders to support its offer, which values the Dublin-based drugmaker at $172.15 a share in cash and stock. Israeli institutional investors own more than 10 percent of Perrigo after a 2005 acquisition in Israel prompted it to list on the exchange. Perrigo Chief Executive Officer Joe Papa is trying to fend off Mylan, saying a deal would be a bad fit and comes with significant risk.
Perrigo had filed an injunction with a Tel Aviv court to prevent Mylan from going forward with the tender process in Israel on grounds that it had not filed a prospectus in that country. Perrigo also charged that Mylan’s governance rules -- which includes a provision to thwart hostile takeovers -- were in conflict with Israeli securities law. Perrigo rose 1.6 percent at the close in Tel Aviv, to 619.90 shekels ($162.20).
Mylan must list its shares for at least one year even if the acquisition fails, according to the Israel Securities Authority.
(An earlier version corrected details of the injunction in the third paragraph.)