Mylan said on Friday that 40% of Perrigo’s shares were tendered in its $26 billion hostile takeover offer, falling short of the goal of 50%.
With the deadline for the offer expiring at 8 a.m. ET on Friday, Mylan (MYL) said 58 million Perrigo (PRGO) ordinary shares had been validly tendered.
Netherlands-based Mylan made its first public offer for Dublin-based Perrigo in April and pursued a hostile takeover when it was rejected.
Mylan‘s offer of $75 plus 2.3 Mylan shares was worth about $174.36 per share, based on Mylan‘s Thursday close of $43.20, or about $26 billion for all outstanding Perrigo shares.
The deal’s rejection will now focus investors’ attention on Perrigo’s standalone strategy. CEO Joseph Papa has said he is open to dealmaking, and sources familiar with the matter said earlier on Thursday Perrigo had held merger talks with Endo International earlier in the fall.
Perrigo reported a better-than-expected profit for the third quarter last month, and said it would lay off 6% of its global workforce and buy back shares worth $2 billion.
Mylan had used a Dutch poison pill-style defense to fight a $40 billion takeover by Teva, arguing that a deal was “without sound industrial logic or cultural fit” and that it would face regulatory hurdles.
Executive chairman Robert Coury said last week that, while the purchase of Perrigo was good for both companies, Mylan could survive without it. He pointed to the very strong market position of EpiPen, Mylan‘s biggest-selling branded product, which treats emergency anaphylactic reactions to allergens.
This story was updated to reflect the failure of Mylan’s bid for Perrigo.