More on Perrigo-Elan deal

|About: Elan Corporation, plc (ELN)|By:, SA News Editor

The bid tops Royalty Pharma's rejected $8B offer for Elan (ELN) from earlier this year

Perrigo (PRGO) shareholders will receive one share of the new company for each share of Perrigo and $0.01/share in cash.

The U.S. company's shareholders will own 71% of the combined company and Elan investors 29%

The combined firm will be incorporated in Ireland, where the tax base is 12.5%. That should reduce Perrigo's tax costs to the high teens from 30%.

Perrigo expects savings of $150M a year, including from the lower tax rate.

Perrigo to receive Elan's $1.9B in cash and royalties from sales of the Tysabri multiple sclerosis drug

Perrigo will fund the deal using $4.35B in bridge financing from Barclays and HSBC plus cash. (previous)