Worth over $30bn, Takeda is not willing to give up on its proposed takeover of pharmaceutical company Shire. The company has had previous bids rejected by the company, yet Shire’s Board has approved a $64.3bn acquisition. At completion, Shire shareholders would own approximately 50%.
The company’s new bid has is fourth offer placed on the table. Takeda is continuing to expand its international reach but faces increased challenges in the pricing of drugs amongst growing competition in a number of rare diseases.
The deal will enable Takeda to further its presence within the US. If successful, it will become one of the largest international acquisitions this year, and could compete with international giants, such as AstraZeneca, The Telegraph reports.
However, Takeda shares have dipped by close to 10% upon the news release, highlighting the unease of shareholders. Shire is presently twice the size of Takeda, so it is unknown how such a takeover will impact the business.
"While this offer represents a solid improvement over Takeda's third bid (38% cash), we still wonder if it is enough to satisfy Shire shareholders," Jefferies analyst David Steinberg informed CNBC.
Nonetheless, Shire’s board has agreed on an extension to the previous regulatory deadline, and now have up to May 8th to make a final decision.