Yesterday Shire announced receipt of a revised acquisition proposal from Takeda Pharmaceutical Company, equivalent to a value of approximately £46bn ($64bn).
Shire’s board says it is willing to recommend the offer to its shareholders and will extend the deadline until 5pm (GMT) on May 8, 2018.
Shire had previously rejected Takeda’s acquisition proposals, saying the offers "undervalue" its pipeline and potential for growth.
But Takeda’s offers have steadily increased over the past month and the latest bid is 4% above the prior cash offer, investment banking firm Jefferies published this morning.
The cash component of the current proposal is largely unchanged.
“If accepted, SHPG [Shire] shareholders will become ~50% owners in the NewCo. That said, are SHPG shareholders willing to accept an offer that is in effect 44% cash and 56% equity?” the analysts added.
Neither Takeda nor Shire responded to a request for comment before the time of publishing.