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.
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.
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.
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.