Deals and IPOs

Mylan seeks to buy Perrigo for $205 per share

Mylan offers to acquire Perrigo

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 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