(NYSE: PRGO)
Mylan ($MYL) Proposes to Buyout Perrigo ($PRGO) for $205/share.
Mylan has issued a press release that they are proposing to buy Perrigo for approximately $205/share. This represents a 25% premium over market close as of 4/3/15.
“Specifically, we propose to offer Perrigo shareholders $205 in a combination of cash and Mylan stock for each Perrigo share, which represents a greater than 25% premium to the Perrigo trading price as of the close of business on Friday, April 3, 2015, a greater than 29% premium to Perrigo’s sixty-day average share price and a greater than 28% premium to Perrigo’s ninety-day average share price.” – from Mylan Executive Chairman Robert J. Coury. Proposal Letter
As the news broke at 11:27am shares of Perrigo immediately spiked from 166.01 to 176.42 before being halted. For those unfamiliar with breaking news, a stock that runs quickly can be halted on what is called a Volatility Halt. This gives traders in the market the opportunity to read the news and is an attempt to prevent flash crashes or spikes. Shares of $PRGO resumed trading 7minutes later at 11:35 and opened at $205.50. This represented a quick 23% increase. Shares continued running to a high of $215.73 before retracing some of the gains.
Perrigo develops, manufactures, and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals and nutritional products. The proposed buyout is subject to confirmation of due-diligence.
This story is breaking and more information will be added as it becomes available.
