SEVERE WX : Winter Storm Warning - Blizzard Warning View Alerts
CLOSINGS: View Closings

Takeda sweetens $60 billion Shire pitch as rival bows out

Allergan has done a U-turn on considering a massive bid for biotech firm Shire, the latest twist in a saga that has p...

Posted: Apr 20, 2018 11:57 AM
Updated: Apr 20, 2018 11:57 AM

Allergan has done a U-turn on considering a massive bid for biotech firm Shire, the latest twist in a saga that has played havoc with pharmaceutical stocks this week.

Shire has already been approached by Japanese drugmaker Takeda, which said Thursday it had proposed paying about -42.4 billion ($60 billion) for the company.

Reuters then reported Thursday that Allergan, whose headquarters are in Dublin, was also considering a bid for Shire, citing unnamed sources. Allergan responded with a statement saying that it was "in the early stages of considering a possible offer for Shire."

The news sent Shire's shares skyrocketing as much as 12% in London trading. They closed up nearly 6%. Meanwhile, Allergan's stock in New York sank as much as 8.5%.

But Allergan later killed the speculation, saying in a statement that it "does not intend to make an offer for Shire." The company said it will continue "evaluating a full range of potential strategic actions that will create value for shareholders, such as divestitures, combinations and acquisitions."

Related: The next mega merger could be a $60 billion drug deal

Allergan shares trimmed their losses, closing down about 4%. Shire's stock sank more than 3% early on Friday.

Takeda's shares have also taken a beating from all the talk of a blockbuster offer. They closed down nearly 5% in Tokyo on Friday.

Shire said in a statement that it had received and rejected three different proposals from Takeda in the past month.

It said its board and management were "focused on fully evaluating internal and external opportunities to maximize value for shareholders, including any further proposals from Takeda."

If Takeda formally makes a takeover bid of $60 billion or more, it would be the biggest so far this year, according to data from Dealogic.

And if a takeover of that scale goes through, it would be the third biggest acquisition of a UK-traded company in history.

-- Alanna Petroff contributed to this report.

Article Comments

Mason City
18° wxIcon
Hi: 26° Lo: -6°
Feels Like: -2°
Albert Lea
12° wxIcon
Hi: 27° Lo: -5°
Feels Like: -6°
28° wxIcon
Hi: 29° Lo: -3°
Feels Like: 17°
Charles City
28° wxIcon
Hi: 29° Lo: -6°
Feels Like: °
26° wxIcon
Hi: 25° Lo: -4°
Feels Like: 12°
Winter Storm Warning
KIMT Radar
KIMT Eye in the sky

Latest Video


Chris and George at the top of the 10


Snow plow drivers prep for snow


Navigating Mayo Clinic Ambulances in the snow


Snow and 18 Wheelers


When to call 911


Chris' PM Weather Forecast 1/17


Tow truck drivers prepare for snow


Weather impacts on public transportation


First at 4 Snow Storm


Winter Weather can't stop early voters

Community Events