Shire PLC (ADR) (NASDAQ: SHPG) is having a relatively strong day in the market as speculation surrounding a potential acquisition of the company continues to surface. By now, most people in the biotech investing space know that Takeda, a Japanese drug maker, has been attempting to purchase SHPG for some time, making multiple offers in the process. However, is the acquisition going to happen?
Takeda Pharmaceuticals Wants Shire Bad!
As mentioned above, Shire PLC is having a relatively strong day in the market today – one of many we’ve seen recently. The gains as of late have been the result of repeated takeover attempts by Takeda Pharmaceuticals, a Japanese company that really wants to get their hands on Shire. According to Bloomberg, the deal is just about to come to life.
According to reports, Takeda and SHPG are very close to reaching a deal that is expected to be valued at or around $60 billion. In fact, rumor has it that the companies could announce a preliminary agreement under which Takeda will acquire SHPG as soon as Tuesday evening. Nonetheless, it’s important to keep in mind that this is nothing more than a rumor at the moment. Until something is actually announced by either one of these companies, the idea of a deal remains speculation.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. While neither company released news of their own, news surrounding the takeover potential here is circulating all over the place, and it is definitely a source of excitement for investors. So, it’s no surprise that the stock is running for the top in the market today. Currently (11:40), SHPG is trading at $164.85 per share after a gain of $4.77 per share (2.98%) 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 acquisition. Nonetheless, we’ll continue to keep our eyes peeled and continue to bring the news to you as it breaks!
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