Shire plc (LSE:SHP; NASDAQ:SHPG) said late Tuesday its board is willing to recommend to shareholders a revised takeover bid from Takeda Pharmaceutical Co. Ltd. (Tokyo:4502) that values Shire at about £46 billion ($64.4 billion) and would equate to about a 50% stake of the combined company.
Shire's board extended to May 8 the deadline to finalize the proposal and said it would engage in discussions with Takeda to resolve "other terms" of the offer including the completion of due diligence by Shire on Takeda.
The revised offer comprises £27.26 per share of new Takeda shares and £21.75 per share in cash.
Takeda's fourth bid submitted on April 20 offered a £26 price per share of new Takeda shares and £21 per share in cash, in a deal that valued Shire at about £44 billion ($62.7 billion) (see BioCentury, April 20).
On Tuesday, Shire added $3.85 to $163.94 on NASDAQ and 130p to 3,930p on LSE. Shire announced the news after market close. The stock rose $10.04 to $173.97 in early after-hours trading.