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Perrigo CEO: Mylan's hostile takeover would cause chaos

Staff writer |
Perrigo CEO Joseph Papa urged shareholders not to accept rival Mylan's $25 billion hostile bid for the company.

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Mylan, which first made a bid for Perrigo in April, went hostile in September, and Perrigo shareholders have until November 13 to accept its tender offer.

Under Irish law, Mylan needs to secure 80 percent of shareholders' votes to take control of Perrigo. It says it will run Perrigo as a separate entity if it receives more than 50 percent, but less than 80 percent.

CEO Joseph Papa, speaking to reporters at the Tel Aviv Stock Exchange where Perrigo shares have traded since 2005, said he did not believe Mylan will secure 50 percent of shareholders' votes.

"But if they do get to 50 to 80 percent it would be a very chaotic process," he said.

"The chaos that would occur ... is that all of the long-term Perrigo employees would be in a state of uncertainty that what Mylan would probably seek to do is change the board of directors of Perrigo and also the management team."

That uncertainty would last at least six to eight weeks, delaying the time it takes to achieve synergies.

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