Allergan plc AGN confirmed in a mid-morning statement Thursday that it was considering a bid for Shire PLC (ADR) SHPG but has not extended an official offer.
“There can be no certainty an offer will be made nor as to the terms on which any such offer would be made,” the press release said.
Why It’s Important
Investors do not seem to support a Shire takeover. The potential target made headlines this week with a $2.4-billion sale of its cancer treatment business and rejection of Takeda Pharmaceutical’s $60-billion buyout bid.
Ahead of Allergan’s announcement, shares had plunged on the merger chatter. At the time of publication, Allergan was trading down 6.55 percent.
The rumors seemed to strengthen the Shire thesis, though, as shares were popping 4.5 percent at the time of publication.
What’s Next
According to the Takeover Code, Allergan has until May 17 to announce its intentions to pursue or not to pursue Shire. The company can file for a deadline extension with the Takeover Panel.
Related Links:
Stifel Says Allergan Could Use A Face-Lift, Initiates Coverage With Hold
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