I'm not so sure you are correct about the amount of stock that would need to be issued if you look at MYL balance sheet and the retained earnings, cap surplus and ordinary stock holdings. The reason they have those are just for this type of use.
Kyle Bass effectively acquired a key to the boardroom with his huge purchase of PRGO.
He is what has inspired Perrigo's CEO to acknowledge that this company is now in play.
It WILL be acquired, and for well above what it's currently trading at. The only question is WHO will buy it, as I'm certain there are a lot of companies who would LOVE to have perrigo's extensive distribution channels.
It is a way for PRGO to let all know there is a at least a $12 gap in the current offer and that "certain price" which they are looking for to be warm and fuzzy with an acquirer. I would guess a larger cash component and a 5% increase in the MYL current offer makes things happen, especially if they can offer a quick close.
AND no matter how you slice it, if MYL wants to keep its investment grade rating (and even if it relaxed that constraints), MYL shareholder vote is needed to issue the MYL shares to do this deal -- and with $82-$92 per share starring them in the face from full financed Teva, MYL would never get the votes. Never. Its just a matter of another week, at most. Corey will, ironically, end up looking like the hero he is not.
PRGO has just rung the dinner bell, come one, come all, we will make a deal (at the right price).
Perrigo Co.’s chief executive officer said there’s a price at which deal talks with Mylan NV could happen, though the rival drugmaker’s current bid is nowhere near there.
Perrigo last month rejected Mylan’s latest offer of $75 in cash and 2.3 Mylan shares for each Perrigo share, which had a value of about $32.7 billion.
“We’re pretty far apart,” Perrigo CEO Joseph Papa said Monday at an investor meeting hosted by UBS AG in New York, where he gave a presentation and spoke to investors at a smaller session afterward. “We believe they have substantially undervalued the company.”
We might just see Abbott jump in or even Teva, since Mylan is so adamant in not being bought. Interestingly, because of such a firm NO, Mylan could see themselves standing in the cold empty handed if the other two focus on PRGO.
It's all of the above, really, IMO.
The Perrigo CEO could well be softening his stance BECAUSE their competition, Par, got bought out AND because Kyle Bass is chewing his ear to get something done.
The one think that nobody can say now... is that Perrigo is not "in-play". It definitely is.
"Perrigo CEO Says Ready to Talk Deal With Mylan at Right Price"! This is why it is taking off today.
It isn't just Mylan's interest in Perrigo anymore.
Now, we've got Financier Kyle Bass making Perrigo his #2 position, and becoming "activist"... eg: working toward finding another buyer for this "in-play" company, and potentially triggering a bidding war.
Then today, We've got Endo buying out Generic company Par. That creates even more urgency as un-merged companies face bulked up competitors and see heightened logic in bulking up themselves.
This stock is DEFINATELY cheap under $205. It's not a slam dunk yet, but it's a hell of a lot closer to a slam dunk than it was 11 days ago!
Drugmaker Mylan sued Kirkland & Ellis on May 1, claiming the law firm has a conflict of interest representing Teva Pharmaceutical in its $40 billion hostile bid for the company. The complaint filed with a Pennsylvania state court said Kirkland has represented Mylan since January 2013 and obtained confidential information that could give Teva an unfair edge in the takeover battle.
- "We are confident in the propriety of our representation of Teva Pharmaceutical in this matter," a Kirkland spokesman said in a written statement. "We have a written conflicts waiver letter, signed by Mylan, regarding the work we have done for Mylan. These filings are without merit, and are simply tactical measures designed to impede the proposed transaction."
Another possibility [for Abbott] would be to go up against Mylan in the pursuit of Perrigo. Abbott would be a better acquirer of the $30 billion company, Kyle Bass, founder of Hayman Capital Management, said at the SkyBridge Alternatives Conference in Las Vegas on Thursday. Abbott is one of the few large pharmaceutical companies that doesn't have name-brand products that would compete with Perrigo's store labels, Jefferies Group said last year.
Abbott's acquisition strategy isn't a matter of intent, but of timing, CEO White said in April. Market valuations and targets' willingness to engage on a deal come into play, he said.
Whatever its next target, Abbott should make the most of the surge in Mylan shares and cash in its stake, said Vancavage of Eagle Asset, which oversees about $32 billion.
“They said from the beginning that they weren't going to be long-term shareholders in Mylan and with this type of opportunity, it's kind of hard to pass up,” the investor said by phone. “You don't want to be left holding the bag.
I believe allidoiswin is referencing this comment posted at BI:
UPDATE: Bass confirmed during a panel discussion at the SALT Conference that he's long Perrigo.
"Perrigo is an interesting long," he said.
Bass believes that Mylan really wants to buy Perrigo, but he doesn't think that they will be successful.
"I think there are some other bidders out there. One that makes the most sense is Abbott...Abbott sold its generics to Mylan. Abbott is hte best in class...There are a lot of synergies there."
This is considerably better than CLWR was back in the day.
At this point PRGO appears to be handling the offer in a reasonable way, turn down the first few offers, delay and let any potential (additional) suitors have time for due diligence work. At minimum Coury looks to increase the cash component of the offer for PRGO shareholders to consider. I would guess a more binding offer will be part of the next round.
The headline was:
"Mylan chairman said to consider Perrigo sweeteners to make deal -Bloomberg"
The key passage was:
" Mylan NV's Chairman Robert Coury said he may sweeten the company's offer for Perrigo Co Plc by adding terms that will reduce risk to Perrigo's shareholders, sources told Bloomberg on Monday."
You may remember when I suggested issuing out-of-the-money calls for perrigo shareholders along with the 2.3 mylan shares being offered in the merger.
Well, It appears that they may have taken my suggestion to heart.
Next, Bass mentioned his firm has a long position in Perrigo Company (NYSE: PRGO), and said the company could be bought by someone else other than Mylan NV (NASDAQ: MYL).
Been saying this for the past few days. The board is going to sell out just a question of who and when. They have a number in their heads that they would accept. Somebody will buy them out for that number. 250+ imo.