Irish drug company Perrigo has knocked back a buyout offer from generic drugmaker Mylan for a second time in as many weeks.
The Dublin-based firm says that the $31.2bn (€28.5bn) offer, intended to be paid for in part in cash and shares, undervalues the company.
Mylan, which itself is the target of an unsolicited $40bn bid from larger rival Teva Pharmaceutical Industries Ltd, said it would offer $60 in cash and 2.2 of its shares for each Perrigo share.
The company's pursuit of Perrigo, a major producer of over-the-counter drugs, is widely seen as an attempt to fend off Teva, the world's biggest maker of generic drugs.
The offer amounts to $222.12 a share based on Mylan's closing price last Thursday, which was 10pc above the price of Perrigo's stock the same day. Perrigo rejected the new offer, arguing it is not as high as it seems because Mylan's stock has been inflated by Teva's takeover offer.
Based on Mylan's share price of $55.31 on March 10, the new offer would be $181.67 a share.
Perrigo had rejected Mylan's earlier proposal of $205 a share, saying it did not reflect the value of its growth prospects.
The Perrigo deal would be Mylan's biggest yet and could help the company avoid getting bought by Teva.
The Israeli drugmaker had proposed a $40.1bn takeover of Mylan earlier this week, saying the offer was good as long as the firm dropped its bid for Perrigo.