Perrigo ($PRGO) has railed repeatedly against Mylan's ($MYL) hostile takeover bid and introduced massive cost-cuts and streamlining efforts to try to keep its shareholders loyal. Its next step in fending off its unwanted suitor? Heading to Israel.
The Dublin drugmaker's CEO, Joseph Papa, and CFO Judy Brown are on their way to the country to rally investors there against Mylan's bid, Bloomberg reports. Israel's largest institutional investors together hold more than 10% of Perrigo, the news service notes.
Israel, where Perrigo's shares are listed, has become a battleground over the course of the takeover tussle. Last month, Perrigo sued Mylan in Israeli Court alleging that its pursuer failed to publish a lawful tender offer in Israel on the required date and requesting the court stop Mylan in its tracks. More recently, Mylan--whose CFO, John Sheehan, traveled to Israel this summer to meet with the head of the Tel Aviv Stock Exchange--got a go-ahead to list its shares on the exchange as part of its takeover effort.
One of Perrigo's influential Israeli investors is already in its camp. In September, local businessman and former company vice chairman Mori Arkin urged his fellow investors to hold off on taking up Mylan's tender offer, arguing that if they wait a few months, they can "have the same price without the hassle and risk involved in a Mylan deal."
Meanwhile, Perrigo is working on plenty of initiatives to combat the tie-up outside of Israel, too. Last week, it announced it would whittle its global workforce by 6%--resulting in 800 job cuts; pare down its organizational structure; initiate a sales process for its vitamins, minerals and supplements business; and kick off a $2 billion share buyback program, all moves it hopes will keep shareholders sticking around.
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