April 19, 2018 / 10:26 AM / a month ago

Takeda makes $61 billion bid for drugmaker Shire: sources

LONDON (Reuters) - Takeda Pharmaceutical (4502.T) has made a bid for Shire (SHP.L) that values the London-listed drugmaker at around $61 billion, two sources with direct knowledge of the matter told Reuters.

FILE PHOTO: Takeda Pharmaceutical's signboard is seen on its headquarters building in Tokyo, Japan January 30, 2018. REUTERS/Kim Kyung-Hoon/File Photo

The Japanese company’s indicative cash-and-stock takeover proposal is worth about 46.50 pounds per share, the sources said.

The moves comes ahead of an April 25 deadline for Takeda to make a firm offer or walk away from the FTSE 100 company. Shares in Shire were up 6.3 percent at 39.90 pounds at 1113 GMT in London.

FILE PHOTO: Vitamins made by Shire are displayed at a chemist's in northwest London, Britain, July 11, 2014. REUTERS/Suzanne Plunkett/File Photo

Takeda confirmed last month it was considering an offer for Shire, which sells treatments for rare diseases and attention deficit disorder.

    A takeover would be transformational for Takeda, which has a market value of about $37.8 billion, making it smaller than its bid target.

    Its bid values Shire at approximately 43 billion pounds, or $61 billion, Thomson Reuters data showed.

    A spokesman for Takeda declined to comment and Shire did not reply to a request for comment.

    The bid comes amid a surge in mergers and acquisitions (M&A) in the UK as companies take advantage of cheap debt to pursue dealmaking opportunities.

    The value of M&A involving British firms rose by 56.5 percent to $164.3 billion in the first three months of the year, the most since 2007, Thomson Reuters data shows.

    Reporting by Greg Roumeliotis and Ben Martin; editing by Jason Neely and Mark Potter

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