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I think its a bad deal for both parties and so do the Japanese investors . If the price continues to fall overnight in Japan it could be over before it started imo .
But these companies have cash readily available for sky. Where Takeda does not. Hence the deal is not done yet. To be honest I hope shire goes to a bigger company. And I don’t like the fact that we may not be able to hold the paper in the new company here in the UK. But let’s remember guys we are all in together and to win it!!!
�Takeda and its Board have remained disciplined with respect to the terms of the Revised Proposal and Takeda intends to maintain its well-established dividend policy and investment grade credit rating�. Very good, but would be interested to hear quite how...ATB, Scfc
Offer need not be agreed to have the target company shares trading at almost the offer price. I will refer to sky sp again. Its sp has gained so much due to receiving offers that it is now trading at price higher than the latest offer
Here is the back end of an article from sky news and the last sentence makes me feel that something is brewing in the background with shire and that the takeda deal is not yet in the bag. Takeda's offer is in the form of cash and shares. Many of Shire's shareholders will not be allowed to hold shares in a Japanese company or even the US paper with which Takeda proposes to make part-payment. They may be receptive to a rival offer with a larger cash element. So watch this space. Shire's remarkable 32-year story might yet have another twist in it.
It’s not agreed yet my friend
Agreed offer worth �49 but share price �39? There is not usually a 25% gap for an agreed offer???
No matter what the market deals are (small investors not fund managers are making the price what it is at the moment.) when there is a merger or takeover then you find the true price. So hold and wait for the maths to be sorted through due diligence by the accounting firms.
Gsk has ruled itself out of any future bid
True say!!!! Hear! Hear! Hope your right brother lol
�Due diligence � this is what they pay the accountancy firms to do. So the figures are not made up but checked by an outside firm so that it�s all a ok.
U and I might mot be willing to give away 1/2 of our co, but that is what shp did when Bax bought. 1/2 of co with some potential might be far more than whole one of co with clearly diminishing potential, combining with Relatively cheap debt it makes sense for Tak to go ahead with this bs.power of financial engineering must not be underestimated, by d time ( if TO concluded) financial impact becomes clear mountain man, Tak bod and shp bod would�ve extracted such monetary benefits from this exercise that would shrug of repetitional damage. As to second and any further bidders coming forward, imo, it could be only someone who wants to be spiteful to Tak and maybe shp ( if it scapers this TO just to pullout at 11th hour). Why pay � enterprise value � if you can wait for market to panic and get a good deal for you self?
Shire has agreed to sell, takeda is willing to buy and the japanese banks are willing to lend so i say stop worrying about the share price and roll on 8th may when hopefully we can all move on with a nice profit in our back pockets :-)
I don’t think they are interested st this price currently. Let’s wait and see
Yep. Bidding war of 2 with deep/big pockets...-v- Shire which has one bidder and seemingly said bidder is short of a few quid without the help of a massive number of loans! C’est la vie! ATB, Scfc
I think the current share price is far too low. There is a reasonable chance of a counter offer from Novartis or Pfizer; this possibility hasn't been priced into the share price at all.
Its alright for some aint it... Sky received another offer and are currently trading above the offer price. And here we are, shire struggling to even touch the same tens as the offer
Certainly cheaper debt than in other countries (in Japan) but the detrimental affect it’s likely to have its credit rating is key esp. in light of their comments on wishing to maintain this (which at the moment is higher than Shire’s)...but I guess they did also say they would use a disciplined approach to any offer ;-) Let’s see. ATB, Scfc
From same ft article... People involved in the talks said Mr Weber would probably face no major difficulty in securing loans from Japan’s three big banks, which had increasingly relied on acquisition-financing to earn fees in the country’s ultra-loose monetary environment. The acquisition would add Shire's lucrative rare diseases portfolio to Takeda's pipeline, which lacked major late-development experimental drugs and was grappling with patent expiries on its blockbuster drugs.
'The deal, however, remains preliminary and could still fall apart as the two companies have agreed to carry out further due diligence." https://www.ft.com/content/60cadda2-4822-11e8-8ee8-cae73aab7ccb "The board has indicated to Takeda that it would be willing to recommend the revised proposal to Shire shareholders subject to satisfactory resolution of the other terms of the possible offer, including completion of reciprocal due diligence by Shire on Takeda" Shire said in a statement on Wednesday.
where-is-my, I can understand why Takeda are looking down the acquisition route but I think this was never financially workable. Just too big for them. They have provisionally proposed paying c£46bn (being a huge premium to what the market valued Shire at prior to the announcement) for a company itself worth now c£24bn - needs a massive dilution as well as taking on over $55bn if debt! Did they seriously think this wouldn’t harm their credit rating?!? I’ve never understood this from Day 1...if it were Abbvie or Pfizer completely different rationale and would make much more sense. As a PI there is no way I’d want to give 1/2 my company to Shire shareholders and get a huge debt burden on top! Look what happened to Shire’s SP after taking on the big Baxalta related debt burden. ATB, Scfc
This is a classic case of the boy who cried wolf too many times! And now the vultures are circling above.
1st quarter results due out tomorrow.
Trades using Tokyo stock exchange?
Safe to assume some may have bought in at the open this morning and are now nursing a loss of almost 5%. Crafty MMs always win :-/