Biotech Values

[DewDiligence]

MYL-PRGO is a trailblazing deal, regardless of the outcome; whether it succeeds or not, it is the largest-ever hostile offer in any industry whose outcome is ultimately determined by how many shareholders tender their shares:

http://www.wsj.com/articles/mylan-hostile-takeover-bid-for-perrigo-is-rare-nail-biter-1447292062

When Perrigo shareholders cast their votes on Mylan NV’s roughly $26 billion takeover proposal by Friday’s deadline, it will mark the biggest hostile bid ever settled at the ballot box.

Typically, the warring parties reach agreement as shareholders’ will becomes clear. But this takeover fight is anything but typical.

…It has been decades since a hostile bid made it to the finish line, veteran deal makers said—so long in fact, that many of them can’t recall the last one.

By doing a tax inversion in the acquisition of Elan, PRGO became an Irish company and it consequently can’t employ the standard defenses to a hostile takeover, such as a poison pill. Irish takeover rules also prevent MYL from sweetening its offer at the last minute.