Shares of Shire PLC (NASDAQ: SHPG) saw a solid gain on Wednesday after the firm announced that it received an offer to be acquired by Takeda Pharmaceutical.
Takeda said in a statement that buying Shire would enhance its R&D and its reach into the United States, where Shire has a big presence. The firm also mentioned its consideration for a takeover “is at a preliminary and exploratory stage and no approach has been made to the board of Shire.”
According to Reuters, Michael Wegener, managing partner at hedge fund Case Equity Partners, which has a stake in Shire, said:
Takeda publicly saying it is considering an approach for Shire inevitably means that other big pharma players including AbbVie, Novartis, Pfizer et al will equally be running the numbers with a very high likelihood of leading to a competitive M&A multi-bidder situation.
Takeda says that it has not approached Shire’s board. And under takeover rules in the United Kingdom, it has until April 25 to decide whether to make a bid.
For some quick background: Shire sells treatments for rare diseases and attention deficit disorder. And Takeda believes that buying it could create a global biopharmaceutical leader, boosting its position in the United States in oncology, gastrointestinal diseases and neuroscience.
Shares of Shire were last seen up 15% at $148.65, with a consensus analyst price target of $191.14 and a 52-week range of $123.73 to $192.15.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
