Perrigo Rumored To Be On Block; 'Market Source' Sees 25% Premium

Perrigo Company plc PRGO gained 7 percent in Monday morning action after an Israeli business news site said it may be acquired by a competitor. Globes said the over-the-counter drug maker hired an investment banker and "market sources" believe it may fetch a 25 percent premium over its current share price. A U.S. buyer might be attracted to Perrigo in part as a tax-inversion play. Perrigo, originally a U.S. company, is based in Ireland where corporate taxes are comparatively low. Perrigo in May posted an 8 percent decline in fiscal third-quarter earnings and its shares plunged. Shares have since climbed substantially but remain under its 52-week high of $168.39 The company traded recently at $155.50, up 6.4 percent.