Shire is thought to be preparing another takeover offer for Baxalta, according to reports in the US and UK.
Baxalta rejected the company's first unsolicited US$30 billion bid in August, just weeks into its existence as an independent company having been spun-out of Baxter with the company's rare disease and haemophilia portfolio.
In rejecting the offer, Baxalta said its Board of Directors unanimously determined that "it is not in the best interests of Baxalta or its shareholders."
“...Shire’s proposal significantly undervalues Baxalta and its attractive prospects for growth and value creation, and that a merger at this time would be severely disruptive at this very early stage of Baxalta’s existence as a public company and presents a significant and real risk to value creation for our shareholders,” said Wayne Hockmeyer, Chairman of the Board of Baxalta.
According to reports, Shire has now instructed its advisers to renew its takeover bid, just weeks after it announced the US$5.9 billion acquisition of US rare disease company Dyax Corp.
Shire is reported to be working with Morgan Stanley, Evercore and Deutsche Bank on the offer, which could be structured in cash and shares.
Baxalta has a market capitalisation of around US$23 billion, below Shire's original US$30 billion offer, employs 16,000 people globally and had estimated revenue of US$6 billion in 2014, when it was part of Baxter.
A hostile takeover would face significant hurdles, primarily Baxter's 'poison pill' that effectively prevents any unwanted suitor buying more than 10 per cent of the company.
