Generic drug company Mylan increased its offer for over-the-counter giant Perrigo Friday, days after Israel's Teva attempted to head off that deal with its own bid for Mylan.
But the new proposal was quickly rejected by Perrigo's board, while Teva said its interest in Mylan remained alive.
Complaining that the company's board has refused to enter talks, Mylan made a formal offer to Perrigo shareholders of $60 plus 2.2 Mylan shares for each Perrigo share.
The bid was worth about $222 dollars per share, or around $32.6 billion in total, based on Mylan's closing price on Thursday.
That topped Mylan's $205 a share proposal on April 8, which was rejected Tuesday by Perrigo's board as too low, undervaluing its growth prospects.
On Friday Perrigo's board also dismissed the new offer, branding it "lower than the previously rejected proposal."
"Based on Mylan's unaffected price of $55.31 per share on March 10, 2015, the last day of trading prior to widespread public speculation that Teva was considering an offer for Mylan, the value of the offer is $181.67 per Perrigo share."
The board called on shareholders to reject the offer, and the market appeared to agree.
Perrigo shares, which surged on Wednesday after the rejection, lost 3.0 percent Friday to $195.54 in midday trade.
Meanwhile Teva, a leading power in generic drugs, said they were still committed to their $82 a share, $40.1 billion offer for Mylan.
Teva said in a statement that the offer "provides Mylan stockholders with a significant premium and immediate value for their stock, as well as the opportunity to participate in the significant upside potential of a financially and commercially stronger combined company."
Mylan shares rose 2.7 percent to $75.70, while Teva was up 1.3 percent to $64.08.
A Mylan-Perrigo tie-up would create a company with more than $15 billion in annual sales and generate $800 million in annual savings from operational synergies, according to Mylan.
A Teva-Mylan deal would form a $28 billion company that Teva said could generate $2 billion in annual savings, while expanding its specialty pharmaceutical business.
In its new offer Friday, Mylan said it was "disappointed" that Perrigo's board had not agreed to discuss its offer.
"Mylan has repeatedly offered to have a constructive dialogue with Perrigo on the proposal, but Perrigo has refused," the company said in its offer.
"Nonetheless, Mylan believes that a combination of Mylan and Perrigo offers clear and compelling strategic and financial benefits to shareholders and other stakeholders of both companies. Mylan therefore remains committed to completing this transaction."