Shire share price rallies amid Takeda bid hopes

Credit Suisse says feedback suggests Takeda CEO strongly committed to offer

Shire share price rallies amid Takeda bid hopes

Shares in Shire (LON:SHP) have jumped in London in today’s session, following comments by Credit Suisse which have revived hopes for a bid by Japan’s Takeda. The Japanese group confirmed last week that it was mulling over a potential bid for the London-listed rare disease specialist.

As of 10:07 BST, Shire’s share price had added 3.32 percent to 3,719.50p, outperforming the broader market rally which has seen the benchmark FTSE 100 index gain 1.23 percent to 7,120.46 points so far today. The group’s shares have lost just over a fifth of their value over the past year, as compared with a near three-percent fall in the Footsie.

Takeda bid hopes

WebFG News reported today that Credit Suisse had said that an overnight analyst call regarding Takeda had suggested that the Japanese drugmaker’s CEO Christophe Weber was strongly committed to making an offer for Shire.

“Feedback yesterday was that investors were worried the meeting might be vague and ambiguous, but from the initial feedback the tone was anything but,” the analysts pointed out, as quoted by the newswire.

Takeda confirmed last week that it was considering making an approach to the London-listed rare disease specialist regarding a possible offer, while cautioning that its consideration was ‘at a preliminary and exploratory stage,’ with no approach yet made to the FTSE 100 company’s board.

Analysts on Shire

Sanford C. Bernstein, which sees Shire as a ‘buy,’ set a price target of 4,400p on the stock this week, while Societe Generale, which also has a ‘buy’ rating on the rare disease specialist, set a valuation of 7,500p on the shares. According to MarketBeat, the blue-chip pharmco currently has a consensus ‘buy’ rating and an average price target of 4,683.33p.

As of 10:22 BST, Thursday, 05 April, Shire PLC share price is 3,739.50p.

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