30th May 2014 15:18
LONDON (Alliance News) - FTSE 100 listed pharmaceutical company Shire PLC is said to be considering a bid for New Jersey-based NPS Pharmaceuticals Inc in order to secure its own independence according to "usually well informed sources," Financial Times Alphaville reported Friday.
The company has been working with advisers and has held internal discussions about a potential offer valuing NPS at just over USD4 billion, the report said, implying a bid of around USD40 a share based on NPS's USD27.50 market quote on the NASDAQ Friday.
However, discussions are at an early stage, the report said, and might be shelved given events elsewhere in the sector.
Merger and acquisition activity has been heavily in focus in the healthcare sector since the start of the year, with US drugs-maker Pfizer Inc walking away from a highly publicised bid for AstraZeneca PLC after the pharmaceutical giant rejected its USD116.6 billion offer.
Shire has also been subject to takeover expectations, with reports in April suggesting US pharmaceutical company Allergan was preparing a takeover bid for the company.
On Wednesday US medical device maker Stryker Corp denied speculation that it was planning to make of offer the Smith & Nephew following press reports.
A spokesperson for the company told Alliance News that Shire does "not comment on speculation."
Shares in Shire were trading down 0.8% at 3,429.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
AstrazenecaSmith & NephewShire