Shire rejects £42bn bid from Takeda, asks for more

London skyline

London skyline

It is not clear whether Allergan has submitted an offer, and there is no certainty of a bid, the sources said. It emerged Thursday that the Japanese drug giant has made three separate offers to acquire Shire, the last of which amounted to about $60 billion in stock and cash, but Shire said it has rejected all three offers.

Botox-maker Allergan confirmed on Thursday it was considering an offer for Shire after Reuters reported on its interest, sending its shares down 7 percent.

Shire shares jumped as much as 8pc following reports of the offer, before paring back its gains once Takeda confirmed it had been rejected, up 4pc by early afternoon trading. And if a takeover of that scale is done, it would be the third biggest acquisition of a UK-traded company in history.

According to United Kingdom takeover laws, Takeda has until 5pm GMT on April 25 to come back with another offer. The company's neuro focus and Shire's recent entrance into the eye care business are major areas of overlap, but there are also some synergies in gastroenterology.

Shire was founded in the United Kingdom and still has a large base in Basingstoke, but moved its corporate headquarters to Dublin a decade ago. This review is now unlikely to lead either to a major acquisition or a breakup of the company, one of the sources said.

An acquisition of Shire would extend Takeda's global reach and see it secure new assets in gastrointestinal diseases and nervous-system ailments as well as key treatments in the late stages of testing.




FILE PHOTO: Vitamins made by Shire are displayed at a chemist's in northwest London, Britain, July 11, 2014.

Takeda's deal represents a 51% premium to Shire's share price on March 27, the day before Takeda said it was considering a bid for the London-listed company. It would significant expand its presence in the all-important US market.

Shire also rejected the third proposal, made up of £17.75 in cash, to be paid in USA dollars, and £28.75 of new Takeda shares.

"Takeda and its board reiterate that it will remain disciplined with respect to the terms of any such offer", the company's statement said. Shire said that valued it at approximately 44 billion pounds ($62.6 billion), based on total issued and to be issued share capital.

Under British takeover rules, Takeda had until next week to make an offer or walk away, after it initially expressed interest in Shire last month. CNB Bank purchased a new stake in shares of Shire during the 4th quarter valued at approximately $349,000. Shire has a twelve month low of GBX 2,940.50 ($42.10) and a twelve month high of GBX 5,021 ($71.89).

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