M&A

Pressing for direct negotiations, Takeda adds cash to a meatier $63B bid to buy Shire

Looking to whip up some enthusiasm for its quest to buy out Shire, Takeda has sweetened its offer to £47 a share, adding £.5 with a bigger stack of cash to tempt investors with. CEO Christophe Weber now says he can afford £21.00 in cash (to be paid in dollars) and £26.00 in shares.

Christophe Weber

That brings the total to about $63 billion, with an increase of 18% in the portion to be paid in cash.

Shire replied by saying that the board “is considering its position with respect to the Fourth Proposal and will issue a further announcement in due course.” The board has already turned their thumbs down on three earlier offers, demanding to see a number that would compel them to sit down at the bargaining table.

Takeda unveiled its initial round of bids on Thursday, which spurred Allergan to jump into the game for about 4 hours, before a 7% plunge in its share price convinced execs they were playing with fire. Allergan quickly walked away, saying they wouldn’t be bidding after all.

Weber, though, appears completely hooked by the process, looking to acquire a company in a deal that would leave Shire’s shareholders in control of a large chuck of the equity. 

Analysts are waiting now to see whether Shire will bow to shareholder pressure and get down to negotiating a deal, and whether someone with more financial heft comes in to launch a bidding war that Takeda would be hard pressed to compete with. Shares edged up 1.4% mid-day Friday, leaving Shire’s market cap at $48 billion — an indication that investors aren’t at all convinced that a deal is certain.


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