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Takeda Pharmaceuticals Co. is on the verge of a preliminary deal to acquire Shire Plc after the Japanese drugmaker increased its almost $60 billion offer for the biotechnology firm, according to sources.
Shire's board is now weighing its position on a new bid, the firm said in a statement after Bloomberg News reported that the parties were nearing a preliminary deal that could be announced as early as Tuesday. Shares advanced in late trading in New York after Reuters reported that the firms plan to announce a deal on Wednesday.
The two companies have been working on a tentative deal on price, according to the people privy to the matter. Under British takeover rules, Takeda must publicize a firm offer or scrap its pursuit by Wednesday afternoon. The firms may file for an extension from authorities to finalize discussions, sources said.
Negotiations this week have centered on an improved offer, including a potential increase in the cash component. The precise terms of the deal are not yet disclosed. Sources added that the talks be still be postponed or collapse. Officials for both companies declined to comment.
Shares of shire jumped as much as 6.2 percent in London, putting the company's value at around 37 billion pounds. Takeda has fallen by around 24 percent this year, putting the company's market cap at around $35 billion. Shire's New York-listed shares rose by as much as 6 percent to $174 in late trading.
