IRVINGTON, N.Y. (AP) -- Prestige Brands Holdings Inc. rejected an $834 million bid by Genomma Lab Internacional S.A.B. de C.V. on Monday, saying it is inadequate and not in the best interest of the company or its shareholders.
Genomma, a Mexican pharmaceutical products company, offered $16.60 per share in an unsolicited bid for the consumer products company in February. That represents a 23 percent premium to Prestige Brands' closing price of $13.50 per share on the last trading day prior to the announcement.
Prestige said Monday the offer is well below the value of comparable transactions. The company, which makes over-the-counter products such as Chloraseptic throat spray and Coumpound W wart treatment, called the offer "opportunistic" as it recently completed an acquisition of several consumer brands from GlaxoSmithKline and its stock price is on the upswing.
The company also questioned whether Genomma had adequate funding to pay for the deal, as its proposal was light on financial and other key details.
Prestige said it will consider other offers and its board put a short-term shareholder rights plan in place, as this would allow its board the time to consider any other alternatives. Generally such plans are put in place to avoid hostile takeovers.
A representative for Genomma was not immediately available to comment Monday.
Shares of Prestige, based in Irvington, N.Y., rose 32 cents, nearly 2 percent, to close at $16.65.