Takeda reaches preliminary agreement to acquire Shire

Shire said Wednesday that it would "be willing to recommend" that shareholders accept Takeda's revised offer, which is valued at 46 billion pounds ($65 billion). The revised bid from the Japanese drugmaker is comprised of 21.75 pounds ($30.40) in cash and 27.26 pounds ($38.10) in stock, for a value of 49 pounds ($68.53) per Shire share.

Shire has also indicated that it has extended the April 25 regulatory deadline to May 8.

Takeda, whose shares fell as much as nearly 7 percent on Wednesday, confirmed on April 24 that it submitted a revised takeover proposal to acquire Shire, although no further financial details of the offer were disclosed. 

Last week, Takeda submitted an improved offer to acquire Shire for 47 pounds ($65.59) per share, increasing the cash portion of its proposal to around 45 percent. The Japanese drugmaker had said the revised bid, which was comprised of 21 pounds ($29.31) in cash and 26 pounds ($36.29) in stock, represented "a highly compelling opportunity" for Shire shareholders.

Shire had rejected Takeda's third takeover bid valued at 46.50 pounds ($64.90) per share, with 38 percent to be paid in cash, determining that it significantly undervalues its growth prospects.

Takeda had been joined by Allergan as a potential buyer of Shire, although Allergan recently removed itself from the running, with sources suggesting that the move was taken in response to criticism from shareholders. For related analysis, see ViewPoints: Allergan decides discretion is the better part of valour with Shire.

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