Shire goes hostile with $30bn bid for US spin-off

 
Michael Bow
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LONDON-listed pharma giant Shire yesterday made a $30bn (£19bn) hostile approach for US rival Baxalta, in a deal set to double the size of the firm.

The Irish-domiciled company offered $45.23 per share for the group, a 36 per cent premium to the undisturbed share price on 3 August.

Baxalta, a biotech business focused on developing treatments for rare diseases, was spun-out of Baxter International last month.

Shire originally approached the business with an acquisition proposal last month, but on 31 July Baxalta refused to engage in talks with the Dublin-based company, sparking the hostile bid. Shire urged its rival to “engage in a negotiated transaction”, adding that a deal would result in immediate gains for Baxalta shareholders.

Under Shire’s calculation, the firms will deliver $20bn worth of product sales over the next five years between them.

However, Baxalta late last night reaffirmed its objection to the bid, saying that it “significantly undervalues Bax­alta and its attractive prospects for growth and value creation”.

Shire’s approach comes in the wake of its collapsed $55bn deal with US giant AbbVie, which would have seen the firm merged into the US firm.

The deal, one of a spate of mooted pharma deals including a proposed Pfizer takeover of Astrazeneca, hit the skids after the US government signalled it would remove alluring tax benefits on offer for US companies buying overseas rivals.

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