Saatvik Agarwal:
Regarding Perrigo (NYSE:PRGO), Mylan (MYL, Financial) made an offer for Perrigo about a month ago. The original offer was made for about $205 but Mylan never disclosed the actual terms of the offer. It came as a surprise to Perrigo. It came as a surprise to us. Since then, Mylan has actually disclosed the terms of the offer. And it does not quite work out to $205 a share if you use the terms Mylan has disclosed. You have to value it based on the stock price of Mylan before it made the offer, because it is a stock and cash deal, and the stock price of Mylan ran up when they made the offer partly because people speculated that it would put Mylan into play and that Teva would bid on Mylan, which is what happened — Teva made a bid for Mylan after Mylan made an offer for Perrigo. Then Mylan raised its bid for Perrigo.
We have known Perrigo and its CEO, Joe Papa, since we bought the stock five years ago, but we are rational people and if someone offers us a really good price for one of our companies, I think we would be open to selling it. And I think that Joe Papa feels pretty much the same way. Perrigo has rejected the Mylan offer, saying it undervalues the company. So at this point we do not really know what is going to happen.
From Ruane, Cunniff & Goldfarb Investor Day 2015 Transcript Part II - Sequoia Fund.
