A leading investor in Japan’s Takeda Pharmaceutical has flagged concerns over the group’s tie-up with London-listed Shire (LON:SHP), The Sunday Times has reported. The news marks a blow for the companies after a member of the family which founded Takeda recently criticised the takeover.
Shire’s share price rose in the previous session, adding 1.33 percent to close at 4,569.00p, largely in line with a rally in the broader UK market. The pharmco’s shares have added just under a fifth to their value over the past year.
Top Takeda investor ‘sceptical’ of tie-up
The Sunday Times reported yesterday that a top-10 Takeda shareholder was ‘sceptical’ of the group’s planned £47-billion takeover of Shire, arguing that the combined value of the two companies was less than each on its own. He told the newspaper that the news of the Japanese company’s approach for Shire had come as a ‘surprise’ and cast doubt on its ability to cut costs and improve shareholder returns.
“There will be some value distraction from the deal,” he said. “That’s why we are sceptical.” The investor further noted that he needed more information on savings before deciding whether to support the proposed deal.
Bloomberg meanwhile reports that Takeda is understood to have plans to address the debt concerns, and is reportedly considering selling Shire’s eye treatment Xiidra when the deal is completed, and may also offload the rare disease specialist’s drug Natpara, which is used to control blood calcium levels.
Analysts on London-listed drugmaker
Barclays reaffirmed Shire as an ‘equal weight’ last week, without specifying a price target on the shares. According to MarketBeat, the London-listed rare disease specialist currently has a consensus ‘buy’ rating and an average price target of 4,725.30p.