Finance

Shire share price: Takeda reaches deal to buy pharmco

Shire share price: Takeda reaches deal to buy pharmco

Dublin-based Shire, a member of Britain's benchmark FTSE 100 stock index, said Takeda's fifth offer was worth 49.01 pounds per share, comprised of the equivalent of 27.26 pounds per share in new Takeda shares and 21.75 pounds per share in cash.

LONDON, April 25 (Reuters) - A £64 billion bid for drug maker Shire and a fresh £22 billion offer for Sky failed to lift the United Kingdom stock market on Wednesday as worries about rising USA bond yields and corporate costs continued to weigh on global markets.

The stock prices of both companies fell Wednesday after the tentative deal was announced, Shire about 3.4 percent, and Takeda around 6 percent.

Since then, Takeda has made five offers, the latest on Tuesday.

The Japanese drugmaker said it and Shire extended the deadline for talks on the acquisition to May 8.

This isn't the first M&A bid for Shire - a $52 billion takeover by AbbVie had been agreed but was terminated in 2014 because of a change in U.S. tax rules.

The company also expects to get a balanced geographic footprint, enhanced financial strength and a modality-diverse pipeline through the merger with Shire.




Already only 30 percent of the company's drug sales come from Japan, and 70 percent of its workforce is based overseas. To nab Shire, it would have to go into some serious debt, although that's a possibility the company has said it's ready for.

The tobacco company also plans to invest more than GBP1 billion in developing next generation products like vapour and tobacco heating products by the end of 2018.

Shire is a global leader orphan drug development and commercialization.

A bid for Shire, whose drugs include Adderall - a treatment for deficit hyperactivity disorder - follows a series of worldwide acquisitions by the Japanese drug-maker as it seeks to make up for a slowing domestic market and take its place on the global stage among the largest pharma firms, including Pfizer. The combined firm would be the eighth-biggest drug maker in the world.

"The chances are United Kingdom shareholders in particular are not going to want Takeda shares, so there's going to be a forced discount because some people are going to sell it", said Neil Dwane, global strategist at Allianz Global Investors, which holds 1.1pc of Shire, Thomson Reuters data showed. Excluding items, Comcast reported adjusted earnings of USD2.90 billion or USD0.62 per share for the period.

The deal would eclipse SoftBank Group Corp.'s 2016 purchase of British semiconductor designer ARM Holdings for 24 billion pounds - the largest foreign acquisition by a Japanese company. The cash component has increased from an initial 36 percent to 44 percent of the overall offer. Investors in Takeda are also cautious.

It would significantly boost Takeda's position in gastrointestinal disorders, neuroscience, and rare diseases, including a blockbuster haemophilia franchise.


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