Shire Rejects Multiple Equity-Loaded Takeda Offers, Allergan Declines To Bid

Takeda Pharmaceutical Co. Ltd.'s interest in acquiring Shire PLC persists despite the latter's sell-off of its cancer business earlier this week, but the Japanese pharma simply may lack the cash to structure a buyout offer that will be acceptable to Shire's board and shareholders.

Both companies confirmed April 19 that discussions around a Takeda/Shire combination continue, with an April 25 deadline at noon London time pending for Takeda to formally make a bid or withdraw its interest, as required under UK takeover law. Takeda revealed its desire to purchase Shire on March 28, but also reiterated its intent to maintain its investment rating and its dividend policy, limiting how much it could bid for the Irish specialty pharma and how such a deal could be structured