Listed Shire (again) rejects Takeda's £43bn takeover offer

The deal represents a 51% premium to Shire's share price on March 27

The deal represents a 51% premium to Shire's share price on March 27

Shire has rejected a bid of around £42 billion ($60 billion) from Takeda, and Allergan was pushed into making the announcement following press reports under the UK's takeover code.

Shares in Shire slipped on Friday after Botox maker Allergan confirmed it would not make a bid for the Irish pharmaceutical giant.

In late March, Takeda had expressed an interest, although at the time, Shire said it had not been approached by the company.

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According to United Kingdom takeover laws, Takeda has until 5pm GMT on April 25 to come back with another offer.

For Shire, Takeda's most recent rejected offer of 46.50 pounds per share - made on April 12 - comprised 17.75 pounds in cash, paid in US dollars, and 28.75 pounds worth of new Takeda shares.

Allergan then confirmed around 10:20 a.m. that it was "in the early stages of considering a possible offer" for Shire, following a report from Reuters.

Dublin-based Allergan announced in a statement yesterday that it did not intend to make a bid for Shire. The firm has said it could become acquisitive and is looking at strategic options. Birch Hill Investment Advisors Llc who had been investing in Shire Plc for a number of months, seems to be bullish on the $47.96B market cap company.


Takeda, led by Frenchman Christophe Weber, has been actively looking overseas.

The Japanese firm is interested in a Shire takeover to strengthen its cancer, stomach and brain drug portfolio.

In total 13 analysts cover Shire (NASDAQ:SHPG). In the eyes of one Shire observer, at least, the Takeda bid is in the right neighborhood.

"Discussions between the parties regarding a potential offer are ongoing", Takeda said.

The two earlier cash-and-share offers were worth 44 and 45.50 pounds per share, respectively. RBC Capital Markets maintained Shire plc (NASDAQ:SHPG) on Monday, September 28 with "Sector Perform" rating. Shire is whereas considered as the leader of hyperactivity.

Although the Shire acquisition would be transformational for Takeda, Shire is worth about $10 billion more than Takeda, and at the end of 2017 had debt of around $19 billion.

Analysts expect Shire plc (NASDAQ:SHPG) to report $3.58 EPS on April, 26 before the open.They anticipate $0.05 EPS change or 1.38% from last quarter's $3.63 EPS. Although it represents a sizeable premium to Shire's current share price - it closed at £37.54 in London Wednesday and was back at £30.07 on March 27, immediately before Takeda expressed its interest in a deal - most of what it is offering is its own paper.

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