The jump in Shire shares this morning may have the fundamental back that a preliminary deal with Takeda is on its way. But it does seem that traders may be overly enthusiastic regarding this giant killing move by the Japanese firm. After all, like so many other FTSE 100 companies, management at Shire seem to be in no hurry to go anywhere. This despite many of the blue chips woefully underperforming. One has to wonder whether in many cases their interests are truly aligned with their shareholders.
It would and should be easy to believe that Takeda could scrape the cash together to make a decent offer in terms of a premium to sub £30 a share Shire a few weeks ago. But really, Shire should be taken out at £60 plus (judging by the Abbvie episode), and therefore one would suspect if the UK firm is taken out at all, it would be by some larger player. It could very well be the case that Takeda effectively becomes an M&A stalking horse. As well as this one gets the feeling there may be a “final” flush out in the stock towards 3,500p to remove the weak bulls, before any new surge?
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