AJ Bell says Takeda shareholders have put aside their concerns about the takeover of Shire (LON:SHP), Citywire has reported. The comments came after more than 88 percent of investors in the Japanese group backed the deal which is set to create one of the biggest pharmaceutical companies in the world.
Shire’s share price rose in the previous session, rallying 3.09 percent to close at 4,690.50p. The shares outperformed the broader UK market, with the benchmark FTSE 100 index giving up 100.92 points to close 1.44 percent lower at 6,921.84, pressured by Brexit concerns as well as bond market worries on the other side of the Atlantic. This morning, the stock has slipped into the red, having given up 0.67 percent to 4,659.00p as of 08:08 GMT, as compared with a 0.93-percent drop in the Footsie.
Swift progress from now on
Citywire quoted AJ Bell analyst Russ Mould as commenting that Takeda investors had ‘swallowed their concerns’ about the debt required for the £46 billion takeover. He added that “whether this proves a smart move on Takeda’s part is open to debate,” as deals this large sometimes gained “a momentum of their own with management afraid to go back on a plan for fear it will undermine their credibility”.
“Progress is likely to be swift from here on in, assuming Shire shareholders also vote to approve the transaction, with completion expected in early 2019,” the analyst pointed out.
Shire shareholders back deal
Shareholders in the UK rare disease specialist also backed the tie-up yesterday, with more than 99 percent of shareholders voting in favour of the deal. Takeda and Shire further confirmed their previously announced expectation that the acquisition is set to complete on January 8.
As of 08:03 GMT, Thursday, 06 December, Shire PLC share price is 4,659.00p.