Monday 20 August 2018

Takeda makes fresh €50bn bid for Shire as deadline looms

Under British rules, Takeda has until 5pm today to make a firm offer or walk away from Shire. Photo: Reuters
Under British rules, Takeda has until 5pm today to make a firm offer or walk away from Shire. Photo: Reuters

Ben Martin

Japan's Takeda Pharmaceutical has sweetened its $62bn (€50bn) bid for Shire as it races to agree terms with the drugmaker before a deadline to strike a deal expires today.

Dublin-based Shire, a member of Britain's benchmark FTSE 100 stock index, said it had received a fifth takeover proposal from Takeda yesterday but gave no details of the revised bid. It said its board was considering its position.

Takeda, which confirmed the new proposal without providing details, said there was no certainty a firm offer will be made.

It comes after Takeda's fourth bid for Shire on Friday, which was pitched at £47 a share and made up of £26 in Takeda stock and £21 in cash.

That valued Shire, which is led by CEO Flemming Ornskov, at £44.3bn

Under British rules, Takeda has until 5pm today to make a firm offer or walk away from Shire.

However, that deadline can be moved back at the request of the FTSE 100 drugmaker and Takeda had said on Friday that it hoped negotiations with Shire would lead to an extension of the cut-off date.

Shares in the London-listed company were up 3.4pc at £39.30 in afternoon trade.

The latest bid came just before Shire held its annual shareholder meeting in Dublin.

"As of now we can only say that discussions between the advisers of Shire and Takeda are ongoing," Susan Kilsby, the drugmaker's chairwoman, told investors at the meeting, which lasted less than 15 minutes.

Shire focuses on treatments for rare diseases and attention deficit disorder.

A takeover would catapult Takeda into the top ranks of global drugmakers. (Reuters)

Irish Independent

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