Shire PLC (ADR) (NASDAQ: SHPG) is having an overwhelmingly strong start to the trading session this morning, and for good reason. In a press release issued early this morning, the company announced that it could see a takeover offer, and that this could happen relatively soon. Of course, this news is leading to excitement among investors who are pushing the stock toward the sky. Today, we’ll talk about the potential acquisition in the works, what we’re seeing from SHPG as a result, and what we’ll be watching for ahead.
SHPG Announces Potential Acquisition
As mentioned above, Shire is having an overwhelmingly strong start to the trading session this morning after announcing that a takeover offer could come relatively soon. In a press release issued early this morning, the company noted an announcement by Takeda Pharmaceutical Company Limited that it is thinking about making an approach to shire regarding the potential takeover of the company. In the release, SHPG said that it has not received an official approach from Takeda nor is it making any warranties that the company will even make a takeover bid.
In the release, SHPG reminded investors that according to Rule 2.6(a) of the Code, Takeda has until no later than 5:00p.m. on April 25th to either announce a firm intention to make an offer or announce that it does not intend on making an offer to acquire the company. While an extension could take place, the extension would only be the result of consent of the UK Panel on Takeovers and Mergers.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news causes moves. In the case of Shire, the news was overwhelmingly positive. After all, a takeover could be coming soon, and we all know that takeovers generally come with strong premiums. So, it’s no surprise to see that excited investors are sending the stock rocketing toward the top. At the moment (9:46), SHPG is trading at $152.29 per share after a gain of $23.42 per share or 18.18% 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 story surrounding the potential takeover bid by Takeda. However, it’s important to remember that a takeover may not actually happen here. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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