Shire share price jumps as Takeda sounds out banks for loans

Japanese group thought to be moving closer to takeover bid

Shire share price jumps as Takeda sounds out banks for loans

Shares in Shire (LON:SHP) have added more than two percent in today’s session following reports that Japan’s Takeda Pharmaceutical had sounded out its major creditors for loans. The Japanese group recently confirmed that it was mulling over a potential bid for the London-listed rare disease specialist.

As of 12:22 BST, Shire’s share price had added 2.24 percent to 3,672.50p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing at 7,256.60 points, flat in percentage terms. The group’s shares have lost just under a fifth of their value over the past year, as compared with about a 1.2-percent dip in the Footsie.

Shire shares rally

Sources with knowledge of the matter told Reuters today that Takeda had sounded out creditors including its main bank Sumitomo Mitsui Banking Corp, as it moves closer to a bid for Shire which could hit $50 million. The newswire notes that Japan’s Kyodo News had reported earlier that the pharma group was looking for loans of several trillion yen (tens of billions of dollars) in total from multiple banks.

The news comes after Takeda’s chief executive Christophe Weber said earlier this month that size was no obstacle for any ‘mindful’ acquisition and that Shire could accelerate his company’s transformation.

Under UK takeover rules, Takeda has until April 25 to decide whether to make a bid for the UK rare disease specialist, having confirmed its interest last month.

Analysts on pharmco

BNP Paribas reiterated its ‘outperform’ rating on Shire this week, valuing the shares at 4,700p, while earlier this month, Societe Generale, which sees the pharmco as a ‘buy,’ set a price target on the stock of 7,500p. According to MarketBeat, Shire currently has a consensus ‘buy’ rating and an average price target of 4,683.33p.

As of 12:56 BST, Thursday, 12 April, Shire PLC share price is 3,673.50p.

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