Federal Judge Allows Mylan to Continue Takeover Bid for Perrigo

A federal district court judge is allowing Mylan to continue its hostile takeover bid for Perrigo.

In Perrigo Company PLC v. Mylan NV, Perrigo claimed Mylan made false statements by saying it expects the merged companies will see at least $800 million in pretax revenues by the end of the fourth year.

In the ruling issued last week, U.S. District Court Judge for the Southern District of New York Naomi Reice Buchwald says Mylan conducted a “sound” process in devising the estimate.

Mylan is offering $75 in cash and 2.3 ordinary shares for each Perrigo ordinary share. The deal was valued at $27 billion as of September. Mylan can move forward with the acquisition if the majority of Perrigo shareholders tender their shares into the offer, which expires on Nov. 13.

Last week, Perrigo spokeswoman Rachel Chesley reiterated that Mylan’s offer is a terrible deal for Perrigo shareholders. The company does not plan to appeal the ruling, she said.