Shares in London-listed pharmaceuticals giant Shire got a shot in the arm this morning after it emerged Japan's Takeda had made an takeover bid valuing the firm at about £43bn – but Shire has rejected the offer.
Takeda confirmed it had made a takeover bid for an equivalent of £46.50 per Shire share in cash and new Takeda shares on 12 April which was rejected by Shire.
In a separate statement Shire said it had rejected three conditional proposals by the Japanese firm, with the first worth about £41bn on 29 March.
The deal would have offered a premium of 51 per cent to the rare disease specialist's closing share price on the day before Takeda was forced to say it was mulling a bid, according to Mike van Dulken, head of research at Accendo Markets.
On Shire, that'd be a 51% premium to the 3070p close on 27 Mar, before we learnt (289 Mar) of Takeda interest; 57% if you presume SHP shares 'rallied' on spec the day prior— Mike van Dulken (@Accendo_Mike) April 19, 2018
Shire's shares have risen as much as 10 per cent to 4,130p on the news.
Takeda said it will remain "disciplined" in respect to the terms of any offer. It reiterated that the acquisition of Shire would "accelerate its transformation", resulting in a biopharmaceutical leader headquartered in Japan, but added:
Irrespective of the outcome of discussions between the two parties, Takeda remains well-positioned to continue its transformation, delivering portfolio growth while strengthening its pipeline and boosting profitability.
Shire added that its advisers have been in talks with Takeda's to discuss whether a "further, more attractive" deal could be made.
"The board and management of Shire remain committed to enhancing shareholder value and are focused on fully evaluating internal and external opportunities to maximise value for shareholders, including any further proposals from Takeda," Shire said.
Jack Scannell, the co-head of European pharmaceutical research at UBS, said it is "more likely than not" a deal gets done, but he warned the deal is "a real stretch" for Takeda.
The news comes as Shire looks to sell its oncology business to France's Servier for $2.4bn (£1.7bn). The move was thought to complicate Takeda's interests in the firm, as it had cited Shire's oncology unit as part of its rationale for a takeover.