Finsbury Works Takeda's Sweetened Bid for Shire

Takeda is interested in Shire the maker of Adderall because of the British company’s specialist areas

Dublin-based Shire, a member of Britain's benchmark FTSE 100 stock index, said Takeda's fifth offer was worth 49.01 pounds per share, comprised of the equivalent of 27.26 pounds per share in new Takeda shares and 21.75 pounds per share in cash.

The bid follows a string of offers rejected by Shire over the past month and comes as Takeda looks to expand overseas in the face of an expected drop in drugs prices at home. In Wednesday, March 28 report Bank of America maintained the stock with "Buy" rating.

Takeda acknowledged its offer in a brief statement, confirming that the company did make.

But shares in Takeda extended recent losses, tumbling 7pc as investors fretted over its ability to buy a company twice its size, raising doubts about whether Shire shareholders will accept a bid that is 56pc in new Takeda shares.

Notably, Comcast reported a profit for its first quarter that increased 21% from past year of USD3.12 billion, or USD0.66 per share. Shire will bolster its GI and neuroscience units and give it an entry into rare diseases and hemophilia. Also, more than two thirds (nearly 60 percent) of Shire's sales come from the US. Under the leadership of its first non-Japanese CEO Mr Christophe Weber, Takeda has made some strategic acquisitions and finalized some big deals including the latest acquisition of U.S. oncology group Ariad Pharmaceuticals for over $5bn. This compares with USD2.57 billion, or USD0.53 per share, in last year's first quarter. The company recently sold its oncology unit to unlisted French drugmaker Servier for $2.4 billion. The company has already locked in 1 trillion yen ($9 billion) in financing from Sumitomo Mitsui Financial Group Inc. and Mitsubishi UFJ Financial Group Inc.

Shire is a global leader orphan drug development and commercialization. Shares in big name companies such as construction equipment maker Caterpillar, Google parent company Alphabet and soft drinks maker Coca-Cola suffered steep declines on Tuesday. Five analysts have made estimates for Shire's earnings, with estimates ranging from $3.28 to $3.79.

Takeda believes the new proposal represents "a highly compelling opportunity for Shire shareholders, which reflects a further increase in value and a material increase in the cash component of the consideration mix". Zacks Investment Research's EPS calculations are an average based on a survey of research firms that follow Shire. Investors in Takeda are also cautious.

As with all the previous bids, the merged company would be listed in Japan and the US.

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