Shares in UK-listed pharmaceutical companies slid today, after the €4bn private equity takeover of a German rival was given the thumbs-up by its shareholders.
Shire shot to the bottom of the FTSE 100, falling 2.6 per cent to 3,772p, shortly after generics-focused German rival Stada put out a statement saying private equity giants Bain Capital and Cinven had rallied enough shareholder support to allow them to complete their €4.1bn (£3.7bn) takeover.
Earlier this week the buyers admitted they had only managed to persuade 34 per cent of shareholders into supporting the deal, but today they said a last-minute rally had pushed it up to the required 63 per cent.
“We are pleased that the question of the future ownership structure has now been settled," said Engelbert Coster Tjeenk Willink, the chairman of Stada.
“Stada will now once again be able to fully concentrate on the operating business and to move forward with the successful growth strategy even more resolutely with the support of two strong partners.
"With the extensive industry expertise of the new owners and their access to a worldwide network in the health care sector, Stada's position as a globally active pharmaceutical company will be sustainably strengthened.”
The takeover is a result of Bain and Cinven's second formal offer. Their first fell through after it failed to cross the shareholder acceptance threshold.
For the second offer, the private equity pair lowered the threshold to 63 per cent rom 67.5 per cent and upped the price by €0.25 per share to €66.25.