Japan’s largest pharma firm Takeda has made three takeover offers for Shire (SHP), just days before the 25 April deadline.

The final offer for the UK rare diseases specialist is pitched at £46.50 per share, which would value Shire at £42.4bn.

This would represent a 18% premium to the UK pharma firm's £39.475 share price on Wednesday, having rallied more than 5% on the day.

Shire rejected this offer, which included a 51% stake in Takeda, stating it 'significantly undervalued the company's growth prospects and pipeline.'

Shares in Shire initially rallied 7% before the takeover news broke, but has lost traction implying the market does not believe Takeda will make another offer.

The UK company says it is discussing with Takeda's advisers to find out if a 'more attractive proposal' is possible.

ANOTHER LONG-RUNNING TAKEOVER SAGA?

Last month Takeda announced it may make an offer to buy Shire. The Japanese pharma group believes that Shire's oncology, gastrointestinal and neuroscience portfolio would strengthen its own business.

This was complicated earlier this week when Shire surprised everyone by announcing a deal to sell its oncology division to French firm Servier in a $2.4bn deal.

Jefferies analyst Peter Welford says Shire’s dominate position in rare diseases and long duration assets in immunoglobulin and enzyme replacement therapy makes it an attractive prospect.

But it could be the next in a long list of protracted deals. Engineering turnaround specialist Melrose (MRO) recently won its own prolonged and bitter battle to buyout out aero and auto engineer GKN (GKN).

UPDATE: Irish pharma company Allergan confirms it is considering a potential takeover offer for Shire.

UPDATE 20/04/18: Allergan says it will not offer a takeover bid for Shire


Issue Date: 19 Apr 2018