Tuesday 21 January 2020

Dublin-headquartered Shire shares slip after Botox maker Allergan rule out takeover bid

Shire shares were down nearly 4pc in morning trading Photo: Stock Image
Shire shares were down nearly 4pc in morning trading Photo: Stock Image

Ravender Sembhy

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

A day earlier, Allergan disclosed that it was weighing up a tilt, hours after Japan's Takeda revealed that it had had its £44bn offer for Shire rejected.

"Allergan now confirms that it does not intend to make an offer for Shire," the group said in a stock market statement.

Shire shares were down nearly 4pc in morning trading.

Takeda's and Allergan's announcements had threatened to spark a takeover battle for Shire.

But the Irish drug-maker said on Thursday that it had rebuffed three offers from Takeda because they "significantly undervalued the company, its growth prospects and pipeline".

Takeda, which first signalled its interest in Shire last month, put forward a £46.50-a-share offer for the firm, comprised of £17.75 in cash and £28.75 of new Takeda shares.

Talks between the pair are ongoing.

Takeda said it will remain "disciplined" with respect to the terms of another offer, which would only be made with the backing of Shire's board and after satisfactory due diligence.

The Japanese company's rationale for acquiring Shire is to "accelerate its transformation and result in a global, value-based, R&D-driven biopharmaceutical leader", to be headquartered in Japan.

In addition, a tie-up would help realise the Japanese company's R&D strategy, drive financial value and allow it to exploit further opportunities in the US.

PA Media

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