Shire snubs inadequate Takeda offer but starts bidding war

Takeda reportedly offers about $60 billion for Lexington's Shire

Shire rejects a $62.5B offer as Takeda circles with three swift buyout bids

Japan's largest pharma firm Takeda has made a takeover offer for Shire (SHP), according to renewed speculation, just days before the 25 April deadline.

But Shire's shares were trading at 38.42 pounds on Friday, well below the latest approach and down 3 percent on the day after another company, Allergan, decided not to pursue its own bid on Thursday, ending the prospect of a battle.

It is the latest twist in the battle to take control of Shire after Takeda said at the end of March it was considering making an offer.

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As per the third proposal, Takeda offered Shire to take a stake of almost 51% in the enlarged company post acquisition.

Allergan then confirmed around 10:20 a.m. that it was "in the early stages of considering a possible offer" for Shire, following a report from Reuters.

Allergan, a global company listed in NY and with its headquarters in Dublin, said it was in the early stages of considering a possible offer for Shire. However, both firms said talks were continuing.

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For Shire, Takeda's most recent rejected offer of 46.50 pounds per share - made on April 12 - comprised 17.75 pounds in cash, paid in USA dollars, and 28.75 pounds worth of new Takeda shares. The company's neuro focus and Shire's recent entrance into the eye care business are major areas of overlap, but there are also some synergies in gastroenterology.

Takeda has ramped up its takeover ambitions under CEO Christophe Weber, as it seeks growth overseas amid patent expirations and a shrinking domestic population.

In total 13 analysts cover Shire (NASDAQ:SHPG).

In a response statement, Takeda confirmed that it had made the £44 billion bid and that discussions between the companies are ongoing.

CLSA analyst Stephen Barker, however, wrote in a client note earlier in the week that a successful bid would likely see Takeda's share price rise as the deal would greatly increase the Japanese drugmaker's earnings per share. RBC Capital Markets maintained it with "Buy" rating and $192.0 target in Monday, February 5 report. It was the third offer Shire's board had received from Takeda. SHPG reached $160.74 during the last trading session after $1.8 change.Shire plc has 9.55 million shares volume, 627.51% up from normal. Shire's top drug was Vyvanse, for attention deficit hyperactivity disorder (ADHD) and for moderate-to-severe Binge Eating Disorder.

Dublin-based pharmaceutical company Allergan has U-turned on its interest in buying Shire.

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