Generic drugmaker Mylan says it will take its $31 billion offer for Perrigo directly to shareholders, in what is set to be one of the most high-profile hostile takeover attempts of the year.

Mylan, which itself is the target of an unsolicited $40 billion bid from larger rival Teva Pharmaceutical Industries, said it would offer $60 in cash and 2.2 of its shares for each Perrigo share.

Perrigo immediately announced that it was rejecting the offer.

The company’s pursuit of Perrigo, a major producer of over-the-counter drugs which acquired the rump of Ireland’s Elan in 2013 in a $8.6 billion deal, is widely seen as an attempt to fend off Teva, the world’s biggest maker of generic drugs.

The three-way chase is further evidence that the appetite for healthcare acquisitions continues unabated.

M&A in the industry has hit $193.9 billion so far this year, double the amount in the same period last year.

Mylan, which is legally based in the Netherlands fopllowing its own corporate inversion, said on April 8th that it would make a cash-and-share bid that valued Dublin-based Perrigo at $205 per share but did not detail the breakdown between shares and cash to be offered.

The offer announced on Friday works out to about $222 per share, based on Mylan’s Thursday close, valuing Perrigo at about $31 billion.

However, Perrigo said the offer valued it at $181.67 per share, based on Mylan’s unaffected price of $55.31 per share on March 10, the last day of trading before speculation emerged that Israel-based Teva was considering an offer for Mylan.

Mylan’s shares have risen by about a third since March 10th.

“Today’s announcement from Mylan proposes a price that is lower than the previously rejected proposal,” said Perrigo, which became domiciled in Ireland as a result of the Elan deal.

Perrigo’s shares were down 3 per cent at $195 in early afternoon trading on Friday, while Mylan’s stock was up 2.8 per cent at $75.75.

Mylan said its offer was fully financed and not conditional on due diligence.

The cash portion will be financed by a new bridge credit facility arranged by Goldman Sachs, the company said.

Teva said in an emailed statement that it remained fully committed to its Mylan offer. – Reuters