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City paying little heed to latest Shire scare story

Shire has agreed to be taken over by Takeda of Japan in a £46bn deal
City paying little heed to latest Shire scare story
Traders didn't seem unduly concerned by the latest threat to the takeover

Shares in Shire PLC (LON:SHP) were up marginally in afternoon trade, suggesting the market is according little credence to the latest scare story dogging the UK drugs giant’s £46bn takeover.

According to newswire reports, former employees accounting for around 1% of bidder Takeda Pharmaceutical Co’s (TYO:4502) shareholder register want to block the deal.

“Last year, the same group attempted to prevent the appointment of outgoing chairman Yasuchika Hasegawa to an advisory position at the company,” Reuters pointed out.

“Although the proposal was defeated at the company's annual general meeting, it gained 30.5 percent of votes.”

Square Mile sanguine 

The Square Mile remained sanguine about the prospect, with Shire stock changing hands for £40.18, up around 19 pence.

Last month, Shire’s board unanimously agreed a £46bn bid tabled by its Japanese drugs rival, having spurned four previous approaches.

The clincher appeared to be the cash component of the transaction, which has been boosted to around £24 a share, making up just under half the £49.01 a share offered by the Japanese company.

Since then, the headline value has receded as Takeda’s stock has fallen.

Shire shareholders will own about half of the combined group after the deal, which will be the biggest takeover in the sector since 2000 if approved by shareholders.

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