Shire share price subdued ahead of Takeda deal vote

Tsveta van Son
  • December 4th, 13:49
  • Last Updated: October 21st, 15:12

Shares in Shire (LON:SHP) have fallen into the red in today’s session, ahead of Takeda Pharmaceutical’s extraordinary shareholder meeting tomorrow when investors will vote on the Japanese group’s acquisition of the London listed rare disease specialist. Nikkei Asian Review meanwhile reports that a former Takeda director has claimed investors holding some 20 percent of the Japanese group were planning to vote down the tie-up.

As of 14:42 GMT, Shire’s share price had given up 0.99 percent to 4,548.50p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.51 percent lower at 7,026.13 points. The group’s shares have added just under a quarter to their value over the past year, as compared with about a 3.6-percent dip in the Footsie.

Investor vote ahead

Takeda’s shareholders are scheduled to vote on the group’s takeover of Shire tomorrow and Nikkei Asia Review reported last night that Kazuhisa Takeda, a former director and a member of the founding family, had claimed that investors holding some 20 percent of the Japanese drugmaker planned to vote against the deal. He, however, conceded that this was not likely to be enough to stop the deal.

“We are definitely against [it]…. [The] financial risk is too big, while [the] expected merit is quite limited,” Takeda said at a news conference in Tokyo, as quoted by the newswire, adding that while M&S was ‘quite necessary’ for the Japanese group’s future, the Shire deal was ‘too risky’.

Reuters meanwhile reported last month that both Institutional Shareholder Services and Glass Lewis had recommended the deal.

Analysts on Shire

As of December 1, the consensus forecast amongst 18 polled investment analysts covering Shire for the Financial Times has it that the company will outperform the market. According to MarketBeat, the blue-chip pharmco currently boasts a consensus ‘buy’ rating and an average price target of 4,771.80p.

As of 13:50 GMT, Tuesday, 04 December, Shire PLC share price is 4,549.50p.

About the author

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Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.

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