Market report: Chatter over bid for Shire puts suitors in frame
The City rumour mill was in full flow today as deal-hungry traders suggested drug-maker Shire was back in play.
Gossips said some of the biggest drugs firms in Europe and the US have hired advisers ahead of a possible tilt at the Dublin-based company.
They added that Shire, fearing lowball bids, had hired defence advisers.
Earlier this month, the FTSE 100 company’s chief executive Flemming Ornskov hinted that investors were valuing Shire too low after a 10% fall from the share price this year.
He pointed to the healthy pipeline of drugs, including for ADHD and haemophilia, which came as part of the £22 billion acquisition of Baxalta.
Shire accepted a £32 billion cash and shares bid in 2014 from US rival AbbVie worth around 5300p per share before a clampdown on tax inversion deals scuppered the takeover.
The shares now languish at 4284.5p, up another 63.31p, or 1.5%, today after gaining ground yesterday, valuing the firm at £39 billion. Shire declined to comment on the speculation.