Shire in fight to persuade investors about Takeda's £45bn takeover deal

Shire in fight to persuade investors about Takeda's £45bn takeover deal

Takeda's bid follows a series of worldwide acquisitions by the Japanese drug-maker as it seeks to make up for a slowing domestic market and take its place on the global stage among the largest pharma firms, including Pfizer. Takeda added that Shire's drug portfolio would benefit from greater exposure in Japan and emerging markets.

In late March, Takeda expressed an interest in acquiring Shire, although at that time no official bid had been made.

Shares in Shire, meanwhile, have soared about 30% since late March.

Takeda shareholders would own roughly 50% of the new company if the proposed deal wins approval.

Takeda's financial advisers included Evercore Inc., JPMorgan Chase & Co. and Nomura Holdings Inc., while Shire received financial advice from Citigroup Inc., Morgan Stanley and Goldman Sachs Group Inc. "However, the risk is that if shareholders vote this down then the shares are going to go down a lot", said Polar Capital fund manager Dan Mahony, who owns both Shire and Takeda stock. In addition, Takeda will apply for its ADSs (each representing 0.5 Takeda Shares) to be listed on the NYSE.

Takeda has however obtained a $31 billion bridge loan to help finance the deal, a fact that had unnerved some investors before the deal's announcement.

For the deal between Takeda and Shire to proceed, 75% of Shire's voting shareholders must support the transaction. Apart from the merits or demerits of the combination, Takeda's offer document estimates that the enlarged entity would attain $1.4 billion in annual pre-tax cost synergies three years after the transaction closes.

More news: Sensex Jumps Over 150 Points, Nifty Touches 10750, ICICI Bank Surges 7%
More news: McCain Doesn't Want Trump at His Funeral - Orrin Hatch Thinks That's 'Ridiculous'
More news: Ken Jeong jumps from stage to give medical aid

The Japanese company announced plans to buy Shire in a cash and shares deal, a fortnight after the two sides reached a preliminary agreement that was subject to due diligence from both companies.

Takeda said that it may reduce the combined workforce by 6 per cent to 7 per cent in the three years, post closing.

Prior to his arrival, Takeda bought Nycomed for $14 billion in 2011 in its previous biggest deal.

Takeda will become the only pharma company with dual listings in Tokyo and NY. Takeda's research and development also includes vaccines.

"Shire's highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda", Christophe Weber, the Japanese firm's CEO, said in a news release. A Shire takeover brings Takeda treatments for rare diseases such as hemophilia - a field that's luring a growing number of drugmakers that can charge more for unique life-saving drugs than for routine treatment.

Founded in 1781 in Osaka, Japan, Takeda is a global, R&D-driven pharmaceutical with around 30,000 employees globally and operating in 70 countries and regions. Shire is based in Ireland and listed on the London Stock Exchange.

Related Articles

  • Warriors, Rockets on course for West Finals

    Warriors, Rockets on course for West Finals

    The Warriors gave JaVale McGee the starting nod in the series against San Antonio but switched things up in this series . They have just too many weapons, and too many diverse ways to exploit you, that teams can't try to defend them all.
    Mueller Refuses Trump Lawyers' Request to Respond in Writing to Interview Questions

    Mueller Refuses Trump Lawyers' Request to Respond in Writing to Interview Questions

    The president has said that the investigation is led by Democrats, even though Mueller is a longtime Republican. Some members of his team made political contributions to Democrats, including Clinton.
    Comedian apologizes after tweeting Draymond Green death wish

    Comedian apologizes after tweeting Draymond Green death wish

    "If he feels the need to do something like that because of basketball, I feel bad for him". When Durant woke up hours later, his reply to the text message was "I got you ".
  • Mark Williams Does His Post World Championship Press Conference Naked

    Mark Williams Does His Post World Championship Press Conference Naked

    Williams failed to qualify for the 2017 tournament, and said he had watched it from his caravan. My missus couldn't stop crying for ages, I got a little bit emotional towards the end as well.
    Israel strikes Iranian targets in Syria

    Israel strikes Iranian targets in Syria

    Israel has warned of open war with Iran, saying it will not allow Tehran to establish a permanent military presence in Syria. Israel then destroyed what it describe as the Iranian command and control center in Syria that dispatched the drone.
    Cerebrospinal Fluid Leak Symptoms: Woman's Runny Nose Was Actually Rare Condition

    Cerebrospinal Fluid Leak Symptoms: Woman's Runny Nose Was Actually Rare Condition

    Kendra Jackson thought she had bad allergies - at least, that's what doctors told her when she complained of a runny nose. Jackson will have a few more checkups to monitor the pressure in her head, but expects to make a full recovery.
  • In Russia elected a

    In Russia elected a "new old" Prime Minister

    A total of 430 lawmakers participated in the voting, with 374 voting in favor of Medvedev, while 56 MPs voted against. Under Russia's constitution, the government is obliged to resign when a new presidential term begins.

    Aperio Group LLC Has $254.51 Million Holdings in Amazon.com (NASDAQ:AMZN)

    Homrich & Berg increased its stake in Amazon Com Inc ( AMZN ) by 22.33% based on its latest 2017Q4 regulatory filing with the SEC. The fund owned 26,636 shares of the e-commerce giant's stock after buying an additional 676 shares during the quarter.
    Sonam Kapoor's mehendi, sangeet ceremony: Guests start arriving at the venue

    Sonam Kapoor's mehendi, sangeet ceremony: Guests start arriving at the venue

    She said the " Neerja " actress has made everyone an integral part of her wedding celebrations with long-time beau Anand Ahuja . Sonam Kapoor's gal pals Swara Bhaskar, Jacqueline Fernandez , Masaba Gupta and Pernia Qureshi have arrived at the venue.
  • India refuse day-night cricket Test against Australia

    India refuse day-night cricket Test against Australia

    South Africa was initially reluctant to play their day-night match in 2016 sighting an extra advantage for the home team . The CA wished for the opening Test at Adelaide from December 6-10 to be a pink-ball Test match.
    Cordray, DeWine win Governor's race

    Cordray, DeWine win Governor's race

    And Cordray lost a four-way Democratic primary in 2000 for the seat held by DeWine, who was in his first Senate term. Five Republicans are battling to see who will take on incumbent Democratic U.S.
    New York State Attorney General Resigns Amid Assault Accusations

    New York State Attorney General Resigns Amid Assault Accusations

    In a statement, Schneiderman admitted that he engaged in role-playing but never assaulted anyone and never had nonconsensual sex. Both in language and imagery, Schneiderman is positioned as a "hero", and President Donald Trump his "Lex Luthor".