Shire PLC (ADR) (NASDAQ: SHPG) is headed for the top in the market today after announcing that the Board of Directors has made the decision to reject a takeover bid from Takeda. The news of the rejection led to excitement among investors, sending the stock on a tear for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from SHPG as a result;
- and what we’ll be watching for ahead.
SHPG Rejects Takeda Takeover Bid
As mentioned above, Shire PLC is having a strong start to the trading session this morning as news is breaking that the company has rejected a takeover bid. In a press release issued about an hour ago, the company announced that it has considered three takeover bids from Takeda and has made the decision to reject all three bids.
In the release, SHPG announced that the most recent proposal was comprised of both shares and cash, with a total value of approximately $60 billion. In the release, the company said that the Board of Directors thoroughly considered the offer with its advisers and has decided to unanimously reject it. In the release, SHPG said that the third offer, valuing the company at approximately $60 billion significantly undervalues the company in their opinion considering its growth prospects and pipeline.
In the release, SHPG said that following the third proposal, a request has been sent for Shire’s advisers to open dialogue with Takeda’s advisers with the goal of deciding whether or not to further conversations surrounding a potential takeover.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dabble in the market is that the news causes moves, and this news was big. After all, for Shire PLC to turn down such a massive offer, it shows that the Board of Directors has confidence in their ability to continue growing the company. So, it’s no surprise that the stock is headed for the top in the market today. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:15), SHPG is trading at $173.81 per share after a gain of $11.27 per share or 6.93% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SHPG. In particular, we’re interested in following the discussions taking place between the company and Takeda and learning whether or not a higher valued takeover offer will be placed and whether or not a takeover will happen. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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