Takeda investors demand that the Japanese drugmaker put to a vote its $62-billion acquisition of Shire (LON:SHP), arguing that the deal “carries overly high risks to the company” given its size, Reuters has reported. The companies agreed the tie-up earlier this month, more than three years after US drugmaker AbbVie scrapped its agreed takeover of the London-listed rare disease specialist.
Shire’s share price has fallen into the red in today’s session, having given up 1.22 percent to 4,083.00p as of 14:21 BST. The decline is largely in line with the broader market selloff which has seen the benchmark FTSE 100 give up 1.20 percent to 7,637.51 points so far today. The pharmco’s shares have lost more than 12 percent of their value over the past year, as compared with about a 1.2-percent rise in the Footsie.
Pressure on Takeda over Shire deal
Reuters reported today that 12 Takeda shareholders had warned that the group’s deal with Shire carried “overly high risks to the company” given its size, adding that new shares to be issued to fund the deal threaten “a danger of causing a great disadvantage to existing shareholders”. The comments came in a proposal that the deal and any future deals worth more than 1 trillion yen (£7 billion) should be put to a shareholder vote.
Takeda’s board of directors opposes the proposal, arguing that the need for prior approval for such deals would damage competitiveness and the company’s ability to make decisions.
Reuters notes, however, that the drugmaker already plans to put the Shire deal to a vote at an extraordinary general meeting, with two-thirds support needed. It will also need three-quarters backing from Shire investors.
Analysts on FTSE 100 pharmco
As of May 25, the consensus forecast amongst 19 polled investment analysts covering Shire the blue-chip pharmco has it that the company will outperform the market. According to MarketBeat, the company currently has a consensus ‘buy’ rating and an average price target of 4,600.75p.