Shire Rejects Takeda’s $61.9 Billion Bid as Allergan Says It May Jump into the Fray

Rare Daily Staff

Rare disease drugmaker Shire said it has rejected a $61.9 billion takeover bid from from Japanese drug giant Takeda as Allegan says it is considering making a competing bid.

Takeda latest bid is the third it has made for Shire. As with the other bids from Takeda, the most recent one is a mix of cash and stock and walks the total value of the offer up to $61.9 billion from its initial $57.8 billion.

“The board met again and thoroughly considered the third proposal with its advisers and unanimously rejected it, concluding that it continues to significantly undervalue the company and Shire’s growth prospects and pipeline,” Shire said in statement.

The latest proposal included $40.47 (£28.75) per share in new Takeda shares, to be listed in Japan and in the United States through an ADR listing, and $24.99 (£17.75) per share in cash, representing a potential value of $65.46 (£46.50) per share and approximately $61.94 (£44 billion) for the total value of the offer. Based on Takeda’s current market capitalization, Shire shareholders would own approximately 51 percent of the enlarged Takeda.

An acquisition of Shire would propel Takeda into a leading rare disease company and strengthen its position in specialty pharmaceuticals. It would also expand on Takeda’s core strength in neuroscience and enhance the company’s geographic reach by strengthening its presence in the United States.

Takeda said “discussions between the parties regarding a potential offer are ongoing,” and that “it will remain disciplined with respect to the terms of any such offer.”

But a bidding war may ensue as Allergan, following press reports, said that it “is in the process of evaluating a full range of potential strategic actions” and confirmed that it is “in the early stages of considering a possible offer for Shire.” No offer, though, has yet been made.

April 19, 2018