Shares in pharma giant Shire recovered this morning after its $30bn (£19bn) hostile bid to take over US biotech company Baxalta.
The offer by the UK company, which amounts to $45.23 per Baxalta share, followed an unsuccessful attempt to get Baxalta to engage in talks last month.
Shire said it urged its rival to “engage in a negotiated transaction”, adding that a deal would result in immediate gains for Baxalta shareholders via a premium of 36 per cent.
Baxalta, which focuses on developing treatments for rare diseases, was spun-out of Baxter International last month.
Based on Shire's estimation, between them the firms will deliver $20bn of product sales over the next five years.
The news initially disappointed investors, with shares falling as much as 7.9 per cent on Tuesday. They spent the latter part of the day gradually creeping up in value, however, and today opened 2.1 per cent higher at £55.10.
They have now dropped back down again slightly, but are still 0.93 per cent higher than yesterday at £54.45.
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