Shire receives new bid from Takeda as takeover deadline looms

Posted April 26, 2018

The latest bid is £49/share, £21.75 in cash and £27.26 in Takeda stock (0.839 of a Takeda share + $30.33 in cash per Shire share).

As per the United Kingdom rules, Takeda has until Wednesday to make a firm offer or walk away from Shire. SHPG is touching $160.5 during the last trading session, after decreased 2.35%.Shire plc has volume of 1.16 million shares.

The board is considering its position and there can be no certainty a firm offer will be forthcoming.

The Japanese drugmaker said it and Shire extended the deadline for talks on the acquisition to May 8.

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Shire plc, a biotechnology company, focused on serving people with rare diseases and other specialized conditions worldwide.The company has $48.78 billion market cap. Since then it has grown rapidly through acquisitions to generate revenues of about US$15.2 billion previous year. The acquisition would also boost its earnings from the US, where Shire's Adderall treatment for attention deficit hyperactivity disorder is popular.

If successful, it would be the largest overseas acquisition by a Japanese company and propel Takeda, led by Frenchman Christophe Weber, into the top ranks of global drugmakers.

British lender Metro Bank Plc posted a more than five-fold jump in first-quarter underlying pretax profit, driven by strong lending growth and a rise in customer numbers, and said it expected to raise capital this year.

"If there's one thing I can say about Takeda, it has always had a vision, and it pursues that vision relentlessly, " said Dunsire, who now serves on the boards of Ultragenyx Pharmaceutical and Alexion Pharmaceuticals Inc. The company has market cap of $48.12 billion.

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Shire is a global leader orphan drug development and commercialization. The combined firm would be the eighth-biggest drug maker in the world. Ltd. lobbed the fifth and most recent offer Tuesday, but Shire did not outline the terms of the revised proposal. A Takeda-Shire transaction would be by far the biggest. The biopharmaceutical company reported $3.98 EPS for the quarter, beating the Zacks' consensus estimate of $3.86 by $0.12. In addition, the Japanese government is increasingly pressuring drug companies to limit or cut prices of blockbuster medicines.

Takeda raised its offers to approximately £43 billion (about $60 billion), then approximately £44 billion ($61 billion), followed by a slightly higher but still approximately £44 billion ($61 billion) proposal on Friday. The similarity in size has raised questions on whether the damage to Takeda's finances would be worth the boost to its portfolio and pipeline.

The cash component of the current proposal is largely unchanged.

Investors in Shire, meanwhile, have adopted a cautious stance. Convincing shareholders outside Asia to accept so much Japanese stock for a United Kingdom -listed company may also be a problem, as my colleague Chris Hughes has written.

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