ALLEGAN (WKZO-AM) — Perrigo, one of Allegan County’s largest employers, is going beyond just telling their stock holders to reject the latest hostile takeover bid from Mylan.
They have filed a lawsuit in federal court in New York against the Pittsburgh-based generic drug firm, claiming their offer misleads investors.
Mylan is reportedly offering stockholders cash and stock amounting to $27 billion in an attempt to secure a majority share of Perrigo’s stock.
The lawsuit claims that Mylan has been making claims to Perrigo investors that it can cut $800 million in operating costs if they controlled the two companies. Perrigo disputes that, and there are other allegations in the lawsuit.
The proposal for massive cost-cutting by Mylan has to be worrisome to Perrigo employee and Allegan officials, who would likely suffer if the combined firm began cutting redundant staff and facilities in west Michigan.
– John McNeill
