7th Jan 2016 11:53
LONDON (Alliance News) - Shire PLC's potential USD32.0 billion takeover offer for Chicago-based Baxalta Inc may hinge on whether Ireland's Shire can pay for a large part of the deal in cash without triggering a big US tax bill, the Financial Times reported Wednesday, citing people "close to the talks".
On Monday, Bloomberg reported that Shire was closing in on a deal that priced Baxalta between USD46.50 to USD48.00 per share, compared to its closing price in New York on Wednesday of USD39.30. That would make such an offer worth up to USD32.57 billion.
Baxalta was spun-off from US medical group Baxter last July, and shortly after received an all-share offer from Shire. Baxalta rebuffed the USD30 billion offer as "significantly" undervaluing Baxalta, and suggesting that a merger at such an early stage in the company's existence would be "severely disruptive".
However, Shire has remained committed to a deal for Baxalta, even as it acquired the US's Dyax Corp in November.
According to the Financial Times report Wednesday, a deal could come within days if the tax obstacle can be overcome. However the talks may drag on or break down altogether, according to people close to the matter.
Shares in Shire were down 2.4% at 4,334.00 pence Thursday morning.
http://www.ft.com/cms/s/0/4dacf732-b481-11e5-b147-e5e5bba42e51.html#axzz3wYQbkh6V
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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