Shire goes public with pro­posed $30b Bax­alta tie-up

The Pak Banker - - COMPANIES/BOSS -

: Lon­don-listed group Shire (SHP.L) said it was seek­ing to buy Bax­alta (BXLT.N) in a $30 bil­lion all-share deal, go­ing public with its bid to cre­ate a global spe­cial­ist in rare dis­eases af­ter the U.S. firm spurned its ini­tial ap­proach.

Shire said its un­so­licited of­fer val­ued each Bax­alta share at $45.23. The Illi­nois-based firm has a pipeline fo­cused on hae­ma­tol­ogy and im­munol­ogy, through tech­nol­ogy plat­forms such as gene ther­apy and biosim­i­lars. The share of­fer, which marks a pre­mium of 36 per­cent over Bax­alta's stock price on Au­gust 3, would give the U.S. firm's share­hold­ers about 37 per­cent of the com­bined group. Shire's Chief Ex­ec­u­tive Flem­ming Orn­skov said he had gone public with its plan, which it first pro­posed pri­vately last month, af­ter Bax­alta's board de­clined to en­gage in sub­stan­tive dis­cus­sions.

"We be­lieve the pro­posed com­bi­na­tion of Shire and Bax­alta would be strate­gi­cally and fi­nan­cially at­trac­tive for both of our com­pa­nies, ac­cel­er­at­ing our re­spec­tive growth am­bi­tions and cre­at­ing the lead­ing global biotech com­pany in rare dis­eases," he said. "It is our strong pref­er­ence to im­me­di­ately en­ter into a ne­go­ti­ated trans­ac­tion to ex­plore the full po­ten­tial of the pro­posed com­bi­na­tion and fi­nalise the terms of an agree­ment."

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