Mylan seeks to buy Perrigo for $205 per share

Generic and specialty pharmaceuticals company Mylan has proposed buying Perrigo in a $29 billion cash-and-stock deal, Mylan said Wednesday.

The $205 per share price would mark a premium of more than 25 percent from Perrigo's last trade last week. After a temporary trading halt, the drugmaker's stock rose sharply following the announcement to trade at around $200 per share.

Perrigo told CNBC it received a proposal from Mylan and its board will meet to discuss it.

Mylan headquarters in Canonsburg, Pa.
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Mylan headquarters in Canonsburg, Pa.

Mylan shares were up 14 percent on Wednesday. It said the potential deal could help drive synergies and expand operating margins.

Mylan's proposal comes on the heels of a flurry of biotechnology and pharmaceutical merger activity last week, including drugmaker Teva's announcement that it would buy Auspex for $101 per share.

Read MoreTeva to buy Auspex in all-cash deal

Perrigo, with a large and attractive portfolio of over-the-counter consumer products, infant formulas and a line of generic topical pharmaceutical medicines, has long been seen as a takeover target. Mylan has been at the center of deal speculation as one of its main rivals, Actavis, has swallowed upcompanies to expand beyond generic medicines, including a deal tobuy Botox maker Allergan.

— CNBC's Meg Tirrell and Reuters contributed to this report