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Shire mulling new offer from Takeda

Staff Writer |
Shire received a revised takeover proposal from Japan's Takeda Pharmaceutical on Tuesday, which the board said it was considering.

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At the end of last week, Shire received an improved takeover offer from Takeda of £47 per share, comprised of £21 cash paid in dollars and £26 of new Takeda shares.

This bid, which values Shire's shares at £44bn, came a day after the FTSE 100 group turned down a £46.50 bid made up of shares and a smaller proportion of cash.

On Tuesday Shire's board did not say what price the new proposal had been pitched at.

Earlier on Tuesday it had been reported by Bloomberg that talks between Takeda and Shire had been progressing to such an extent that a preliminary agreement could be announced on Tuesday.

The Japanese group has until Wednesday afternoon to announce a firm offer or abandon the deal, under UK Takeover Panel rules, but the newswire's sources said an extension could be needed before a deal is agreed.

Takeda said on Friday that it intended to maintain its headquarters in Japan and primary listing on the Tokyo Stock Exchange and intends to put in place a NYSE listed ADR program on completion of any takeover to allow current Shire shareholders to continue to hold shares in the combined company.

The improved offer came a day after Dublin-headquartered US company Allergan said it was mulling a bid and then quickly decided, after an unimpressed shareholder reaction, that it wasn't.

Shire said on Friday that it was "considering its position" on the latest proposal from Takeda, which would see Shire shareholders own approximately 49% of the enlarged Takeda.

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