Mylan NV (MYL) has lost its $26 billion bid for Perrigo Co. (PRGO) after pursuing the company for seven months. The outcome was unexpected, and what ensued was one of the most bitter takeover battles seen in decades.
On Friday, Mylan stated that 40% of Perrigo’s shares were tendered in the offer. The company needed a minimum of 50% to take control of the rival company. On Thursday night, the Wall Street Journal reported that Mylan was going to lose the bid.
The company’s cash-and-stock offer expired on Friday morning, with the majority of institutional investors required to tender by Thursday night in order to be counted by DTC, the national stock clearinghouse.
Mylan shares increased 11% to trade at $48.07 in morning trading. Perrigo’s shares slipped 7.4% to trade at $145 a share.
The sharp decline in Perrigo’s stock price wasn’t surprising, according to most experts. Perrigo would start buying its shares back immediately in order to take advantage of the decline of the stock.
Perrigo stated that it plans to buy back at least $500 million worth of stock by the end of 2015. The company revealed its buyback plan last month as an attempt to satisfy investors.
Mylan had been trying to acquire Perrigo since April.