Takeda lifts Shire takeover bid again

Takeda must make a formal offer for Shire by 1600 GMT on Wednesday, or walk away under British takeover rules
AFP

London (AFP) – Irish-based pharmaceuticals firm and takeover target Shire said Tuesday that Japanese drugs firm Takeda has lifted its informal bid again. 

“The board announces that it has received a revised proposal from Takeda regarding a possible offer for the company,” Shire said but did not reveal the price level.

“The board is considering its position,” Shire added in the brief statement.

Last Friday, Takeda had increased its informal bid to £42.8 billion (48.9 billion euros, $60.1 billion) for Shire, which had already rejected its three previous overtures as too low.

Shire, which is based in Dublin but listed in London, has not yet responded to Friday’s bid — nor the latest approach.

Takeda must make a formal offer for Shire by 1600 GMT on Wednesday, or walk away under British takeover rules.

Bloomberg News has meanwhile reported that a takeover agreement has been reached between the two parties.

The deal would represent Takeda’s biggest-ever takeover, according to Japanese media.

Last Friday, Takeda had lifted its cash and stock bid to the equivalent of £47 per share. That was marginally higher than the prior bid that was pitched at £46.50.

However, some analysts are concerned that a takeover bid of this magnitude could put too much pressure on Takeda’s own finances.

Friday’s news came one day after Irish-based pharmaceutical peer and Botox maker Allergan ruled out a counter-offer for Shire, extinguishing talk of a bidding war.

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