Cold feet or negotiation tactic? No one knows. And the people prepared to guess were 25 per cent wrong about Shire’s price this time yesterday, so their views should be taken with a degree of caution.
Nevertheless, here are the basics on the potential collapse of Abbvie’s $54bn takeover of the UK drugmaker.
Over on Lex this week we’ve been pondering the finer points of what shareholders get out of tax inversions.
So… from the text of AbbVie’s planned £32bn merger with Shire, announced on Friday: Read more
We believe an AGN bid for SHPG is imminent and more attractive than VRX’s proposal.
So says John T. Boris, a managing director at SunTrust Robinson Humphrey. His is not a new idea. Shire has long been seen the obvious poison pill for Allergan, the Botox maker, which could use more bulk to fight off a $53bn hostile approach from Valeant. Read more
Seeking to secure its own independence as M&A activity — whether real or rumoured — continues to convulse the pharma sector, Britain’s Shire is believed to be considering a bid for New Jersey-based NPS Pharmaceuticals, a rare disease specialist.
According to usually well informed sources, Shire has been working quietly with advisers and held internal discussions about a potential cash offer for NPS, valuing the US business at just over $4bn. That would imply a bid pitched at around $40 a share,compared with NPS’s $27.50 market quote on Nasdaq on Friday. Read more
It’s Shire, of course, reacting to a warning of better than expected earnings. The stock was up 8.7 per cent at 2744p at pixel. Read more
Shire, the Dublin-based maker of treatments for attention deficit disorder, said on Wednesday it had agreed to buy closely held Advanced BioHealing for $750m in cash, a day before the biotech company was to go public, reports Bloomberg. The US company’s lead product is Dermagraft, used for diabetic foot ulcers. Advanced BioHealing’s planned IPO on Wednesday would have valued it at as much as $637m, according to regulatory filings. Shire had talked about a potential deal with Advanced BioHealing since 2008, said Mike Cola, president of Shire’s specialty pharmaceuticals business, noting the company would be central to Shire’s new regenerative medicine unit as a semi-autonomous division. DealBook says that by one calculation, the deal represents a premium to “what might have happened in an IPO”.
Breaking pre-market news on Monday,
– India’s GTL cancels tower merger plan with Reliance – via Reuters. Read more
Shire seems to have found the perfect marketing medium to promote its ADHD potion – Twitter, of course.
What better way to promote Vyvanse, a drug aimed at countering hyperactivity and impulsivity, than using a social media tool tailored to hyperactivity and impulsivity? Read more
Breaking pre-market news on Tuesday,
– VW hedges give Porsche €6.8bn windfall – statement. Read more
Hey, it’s magic. Shire, the pharmaceuticals business best known for its ADHD and genetic therapy work, is re-organising itself as a London and Nasdaq-listed entity through a Jersey incorporated holding company – which will somehow be tax-resident in the Republic of Ireland.
Nothing will change operationally. No job losses are envisaged, with Shire retaining its major sites in Basingstoke and Philadelphia. Shareholders do have to vote through the changes, however. Read more
It’s quite the fashionable thing to do: execute the transaction, let the market have it’s snap reaction, allow the dust settle and the share price stabilise…and then refinance.
Shire, the speciality drugs group, on Wednesday confirmed that it is refinancing itself following its recent acquisition of American rival New River. Some $1bn of convertible bonds, due 2014, are being issued — convertible at a premium of between 45 and 50 per cent to the VWAP of Shire stock ahead of final pricing today. Read more
Taking advantage of a recent spike in its share price, speciality drugs group Shire is expected to launch a £1bn convertible bond issue on Wednesday morning, FT Alphaville has learnt.
The move will allow the British company to repair its balance sheet after last month’s acquisition of its US partner New River Pharmaceuticals, which cost £1.3bn. Having paid $64 per share for New River, Shire took on £1.15bn of new debt at the time, but also raised about £450m in a share placing. Read more
Shire has agreed to buy US partner New River Pharmaceuticals for $2.6bn in a deal that gives it a replacement for its top selling drug which goes off patent in two years. But the deal also means the UK speciality pharmaceuticals company is set to become an increasingly attractive takeover target, according to analysts. Shire, which is paying $64 a share for New River, will finance the deal with $2.3bn of new debt and a share placing that on Tuesday raised $900m. The deal will be earnings-enhancing after 2009, the company said.
Live markets commentary from FT.com