The First Proposal comprised 28 pounds per share in new Takeda shares, to be listed in Japan and in the USA through an ADR listing, and 16 pounds per share in cash, representing a potential value of 44 pounds per share and approximately 41 billion pounds for the total issued and to be issued share capital of the Company.
Earlier, Takeda said it offered 46.50 pounds ($66.16) a share for Shire on April 12, with 62 percent of the proposed price in new Takeda stock.
After making modest gains following confirmation of Takeda's interest, Shire shares jumped £3.19 to £40.80 in late trading on Thursday. SHPG underperformed the S&P500 by 39.22%.
Takeda said it will remain "disciplined" with respect to the terms of another offer, which would only be made with the backing of Shire's board and after satisfactory due diligence.
The bid is a 51 percent premium to Shire's closing price on March 27, the day before Takeda confirmed its interest. On Wednesday, November 15 the company was maintained by Susquehanna.
Upping the cash component of the offer might help. It was the third offer Shire's board had received from Takeda.
For Takeda, the deal would mean a expanded presence in the U.S. - Shire collected about 66% of its revenue from the U.S. a year ago.
"Discussions between the parties regarding a potential offer are ongoing", Takeda said.
A successful bid would be the most radical step yet by Chief Executive Christophe Weber, propelling Takeda into the top ranks of global drugmakers with what would be Japan's largest-ever outbound deal. Another possible sticking point is the sheer size of Shire relative to Takeda. Aviva Public Limited Company reported 14,860 shares or 0.02% of all its holdings. Fort Lp acquired 45,674 shares as Deluxe Corp (DLX)'s stock declined 4.13%. It focuses its development resources on projects in various therapeutic areas (TAs), including Neuroscience, Ophthalmology, Hematology, Oncology, Immunology, Gastrointestinal (GI)/Metabolic/Endocrinology Diseases.
Both companies make, among other products, eye care drugs.
"Pursuing a [Shire] deal is a surprise and will likely get material push-back in our view", Randall Stanicky, analyst at RBC Capital Markets LLC, wrote in an investor note. ValuEngine cut Shire from a buy rating to a hold rating in a report on Friday, February 2nd. Moreover, Clear Harbor Asset Management Llc has 0.6% invested in the company for 1.17 million shares.