Baxalta Declines Shire’s $30B Takeover Bid

August 11, 2015

Baxalta has rejected Shire’s $30 billion hostile takeover bid, saying it significantly undervalues the company, which makes treatments for hemophilia and other blood disorders.

The announcement followed Shire’s disclosure of the offer, which would create a global leader in rare diseases with multiple billion dollar franchises.

According to Shire, the Dublin-based drugmaker offered $45 per share of Baxalta — a 36 percent premium over its Aug. 3 stock price of $33 — on July 10, but Baxalta declined to discuss the deal. Shire’s offer came just nine days after Baxalta was spun off from Baxter.

S&P Capital IQ analyst Julien Jarmoszko expects Shire to raise its offer by 20 percent, bringing the value to $36 billion. It would be hard for Baxalta’s management to turn down or refuse to negotiate a $54 per share offer, he says, noting shareholders who received stock only a month ago through the spinoff are already sitting on significant performance.

Shire says the combined companies would generate $20 billion in sales by 2020. — Jonathon Shacat