Shire rebuffs Takeda bids, as Allergan bows out

Takeda CEO Christophe Weber

Dublin-headquartered Shire shares slip after Botox maker Allergan rule out takeover bid

Allergan PLC (AGN) said it will not bid for drugmaker Shire PLC (SHPG) after Shire rejected Takeda Pharmaceutical's roughly $60 billion bid to take over the company.

Looking to whip up some enthusiasm for its quest to buy out Shire, Takeda has sweetened its offer to £47 a share, adding £.5 with a bigger stack of cash to tempt investors with. Takeda is willing to pay 21 pounds per share in cash, or about $29.50, with the remainder paid in stock.

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".

But Shire's shares were trading at 38.42 pounds on Friday, well below the latest approach and down 3 percent on the day after another company, Allergan, decided not to pursue its own bid on Thursday, ending the prospect of a battle.

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Buying Shire would be the largest ever overseas acquisition by a Japanese company and propel Takeda, led by Frenchman Christophe Weber, into the top ranks of global drugmakers. It is an increase of GBP3.25, and about 18% in cash per share, of the previous proposal of GBP17.75 in cash per share made April 12.

Shire's board rejected the proposal, saying it significantly undervalues the firm and its potential growth.

Takeda unveiled its initial round of bids on Thursday, which spurred Allergan to jump into the game for about 4 hours, before a 7% plunge in its share price convinced execs they were playing with fire. The process has no doubt been complicated by Shire's agreement earlier this week to sell its oncology assets to Servier for $2.4bn.

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