Perrigo executives head for Israel in battle against Mylan

Top executives of Dublin-based over-the-counter drug company Perrigo arrived in Israel today for meetings with investors as they seek to fend off a hostile takeover bid from generics group Mylan.

Chief executive Joe Papa and chief financial officer Judy Brown will meet Israel's largest institutional investors, which together hold more than 10 per cent of the company, according to a person familiar with the matter.

Mr Papa will make the case that Perrigo’s standalone strategy, which includes plans to cut 800 jobs and buy back $2 billion of shares to boost returns for investors, is better than combining operations with Netherlands-based Mylan, the person said.

A Perrigo spokesman declined to comment about the visit.

Mr Papa has repeatedly rejected Mylan’s $27.1 billion offer to acquire Perrigo, which makes over-the-counter and generic drugs, as inadequate.

Mylan took its proposal directly to shareholders on September 14th, offering $75 in cash and 2.3 Mylan shares for each Perrigo share.

The bid exposes its investors to “significant financial risks” as well as to Mylan’s “troubling corporate governance”, Perrigo said a few days later.

During his visit, Mr Papa is also expected to pledge commitment to staff in Israel, where it has more than 1,000 employees, the person said.

Perrigo, which is headquartered in Dublin following its $8.6 billion takeover of the rump of Elan in 2013, listed in Tel Aviv after a 2005 acquisition in Israel. To lure Israeli shareholders, Mylan is also seeking to list in Israel. – Bloomberg