Shire PLC (NASDAQ: SHPG)announced on Thursday that it has rejected Takeda Pharmaceutical’s third proposal bid of $60 billion. Shire shares surged shortly after market open to 7.4 percent.
Shire’s announcement comes shortly before Takeda’s deadline of April 25 to make an offer to abandon the attempt under the U.K. Panel’s regulations.
Shire rejected the first bid on April 8, 2018. Following the first proposal, Takeda offered two more bids shortly after.
Takeda’s third rejected bid comprised of 17.75 pounds in cash, which would be paid in U.S. dollars, and 28.75 pounds worth of new Takeda shares. That would value Shire at approximately 43 billion pounds, or $61 billion, Thomson Reuters data showed.
Shire’s board rejected each proposal saying that they undervalued the company and its growth prospects and pipeline, same as the first proposal rejection.
Although, Shire has entered into discussions with Takeda’s advisers to discuss further matters regarding the takeover attempt.
Takeda is pushing aggressively for the takeover attempt to beef up its pipeline, just like many other pharmaceutical companies. Many companies are looking to diversify their pipelines or new additions to bolster sales due to many patents beginning to expire soon.
If the acquisition is successful, Takeda will expand its business out of Japan and onto a global scale. The pharmaceutical company will gain significant presence in the U.S. and Shire’s origin in the U.K.
Shire sells treatments for rare diseases areas including hematology, immunology, genetic diseases, neurosciences and internal medicine areas surrounding ophthalmics and oncology. In combination with Shire, this would changeup Takeda’s position in drugs for cancer, gastrointestinal diseases and neuroscience field.
Shire earlier this week sold its oncology business to Servier S.A.S. for $2.4 billion.