Market has no tolerance for over hyped shares. What say you now PRGO. To think I almost bought your shares for the conversion. Now PRGO has a 10% less premium. Will it it 100 in this market?
Rejected offer..now MYL will sell down this with the PRGO shares they have accumulated. Should have taken the deal.
The shares will go down, as analysts feel this is a bad deal, and bad fir and concentrated sellers (40% of PRGO institutions also own MYL) will hit the exit button. MYL will drop 10% easy, making PRGO "pop", no pop, maybe a 5% decline. Other bidders will show up after MYL is gone, and this is a rage great co, independent, if needed. And the hoopla re drug pricing and Valiant accounting issues, etc, hurt MYL way more than PRGO, Do not tender!! Read the Googenheim report out last PM -- suggesting PRGO solo is worth $230, and $145 wi MYL.
Well , I dont see perrigo going places without the deal. The way I see it , if the deal works out, perrigo shares jump 12% and more since the mylan shares will also go up. Its not that perrigo has some secret drug waiting to shoot the stock up.
Guggenheim analyst Louise Chen reiterated a Buy rating and $230 price target on Perrigo Co. (NYSE: PRGO) ahead of Friday, saying the stock could offer more upside than the Mylan (NYSE: MYL) deal. Chen commented, "We don't advise trading PRGO stock in for MYL (NEUTRAL, $45.44) shares. PRGO's recently announced enhancements to increase earnings potential in '15+ give us even more confidence that PRGO shareholders are better off owning PRGO's stock versus trading their shares in for MYL's stock. We have heard the argument that tendering shares could offer investors a small return in '15, to offset other spec pharma investments that may be down YTD. We believe an important part of this equation that should be considered is the selling pressure on MYL shares, by PRGO shareholders, who tender but don't want to hold MYL shares after taking delivery (selling pressure could start Friday). It is our opinion that this selling pressure has the possibility to eliminate a large portion, if not all, of the gain holders could receive by tendering. Further selling pressure could come from ABT (NC, $45.76) and TEVA (NEUTRAL, $59.94) disposing of their holding, which together accounts for ~19% of MYL shares. ABT and TEVA have both publicly disclosed their intention not to be long-term MYL holders." For an analyst ratings summary and ratings history on Perrigo Co. click here. For more ratings news on Perrigo Co. click here. Shares of Perrigo Co. closed at $163.03 yesterday.
to tender to Mylan. Careful -- don't just do the 2.3 times MYL price plus $75 calc to decide. Consider that with such a poor fit, MYL may well go down, possibly a lot, making you seeming 8% "pop" perhaps a negative pop.. especially when everyone who doesn't want to hold Myl start selling.
If you have shares you should have gotten a notice to vote.