Shire ramps up bid to win over Baxalta board

The board of Baxalta will come under renewed pressure to open takeover negotiations this week, following early campaigning by Shire to promote its $30bn (£19.4bn) offer for the US firm.

 

However, Baxalta insists that it will not accept this offer, with a company source describing the bid price as being “nowhere near” the value the board is seeking.

 

Talks between pharmaceutical giant Shire and shareholders in its potential takeover target have been taking place over the past number of days, as the Dublin-based firm tries to convince the US-listed company of the benefits of combining forces.

 

One source close to the deal said Shire’s discussions with Baxalta’s investors had been “encouraging”, with meetings set to continue over coming days.

 

Shire announced its hostile takeover bid last Tuesday, following an unsuccessful attempt to engage Baxalta in talks last month. 

 

When the bid was announced, the offer represented a premium of 36 per cent to Baxalta’s share price, however at close of trade on Friday, this was closer to a 27 per cent  premium.

 

Baxalta has been trading as a public company for just over one month, having been spun off by parent firm Baxter on 1 July.