Takeda raises bid for Shire to over $60 billion

Bloomberg

Takeda Pharmaceutical Co. sweetened its offer for drugmaker Shire Plc to more than $60 billion after three prior bids were rejected, wooing investors in the US company with a higher
cash component.
The Japanese company boosted its offer to 47 pounds ($65.84) a share from 46.50 pounds a share, confirming a Bloomberg News report that it was considering a higher bid for Lexington, Massachusetts-based Shire. The new proposal includes 21 pounds a share in cash and 26 pounds a share in new stock.
Shire said in a statement that its board of directors “is considering its position with respect to the fourth proposal and will issue a further announcement in due course.”
The new bid lifts the cash component to about 45 percent from 38 percent, in an effort to win over shareholders who might be reluctant to receive stock in Takeda, a smaller company than Shire.
Takeda said it would enable current Shire investors to continue to hold shares in the combined company via American depositary receipts on the New York Stock Exchange.
“Takeda believes that the improved proposal represents a highly compelling opportunity for Shire shareholders, which reflects a further increase in value and a material increase in the cash component of the consideration mix,” Takeda said in a statement.
Shire rejected Takeda’s previous proposal, saying the terms “significantly undervalue the company and Shire’s growth prospects and pipeline,” but left the door open for further negotiations. A completed deal would be the biggest by a Japanese company of an overseas target, and the combined revenue would place Takeda among the top 10 global pharmaceutical giants.
Overall, the new offer represents a premium of 7 percent to an initial bid made in March, worth 44 pounds a share, Takeda said. It’s also 53 percent above Shire’s share price before Takeda officially disclosed its interest in a deal.
Analysts had said Takeda would need to raise the cash element of its offer. Shire disclosed that Takeda had made three offers of cash and stock for the company in the past two weeks, each time raising the cash portion. The newest offer represents an 18 percent bump compared to the previous cash amount, the highest increase yet. Takeda, which is based in Osaka, said it will maintain its headquarters in Japan and a primary listing on the Tokyo Stock Exchange.
ces liberated Eastern Ghouta after driving out the remaining armed groups from Douma, the Al Mayadeen television network reported, citing a statement by the Syrian Army.
In his tweet on Saturday, Trump called the strike “perfectly executed.” His allies defended an action carried out without a UN mandate, and before inspectors from the global body that monitors chemical weapons had a chance to visit the site of the alleged attack. All three countries involved in the overnight strikes said they were satisfied with evidence pointing to Assad’s responsibility. “We would have preferred an alternative path, but in this case there was none,’’ UK Prime Minister Theresa May said. “We cannot allow the use of chemical weapons to become normalised.”