Shire to recommend sweetened Takeda takeover bid

Biotech giant Shire has said it would be willing to recommend an amended $64bn takeover bid from Takeda Pharmaceutical Co to shareholders, according to Reuters.

The rare disease specialist made the statement amid concerns about Takeda’s recent share value losses, with a 7% drop as investors expressed concern over the company’s ability to acquire a company twice its size. If the bid is to go ahead, Shire shareholders will need to accept a bid that is 56% newTakeda shares.

Since news of a possible bid from Takeda broke, shares in the company have fallen 18%, making the deal less attractive to Shire shareholders.

Jefferies analyst David Steinberg said: “While this offer represents a solid improvement over Takeda’s third bid (38% cash), we still wonder if it is enough to satisfy Shire shareholders.”

Shire’s shares rose 1.5% to £39.90 in early London trading, a figure well below Takeda’s £49 offer. Takeda’s fall in share price erodes their $64bn headline offer.

The fifth offer from Takeda is worth £49.01 a share, made up of £27.26 per share in new Takeda shares and £21.75 in cash. This is 4.3% higher than Takeda’s fourth offer on 20 April and 11.4% up on the first approach, made on 29 March.