Although for some reason the MSM does not mention this particular website, it is always keen to cite them. In this case it is The Telegraph of which I am a proud “premium” subscriber.
Yesterday the publication highlighted rumours in the market regarding the possibility of Shire Pharma being taken over. As the article acknowledges, it is the silly season as far as M&A chatter is concerned, especially as anyone with the £45bn likely required to buy Shire has already taken the rest of December and most of January off.
Nevertheless, with the shares still languishing near the bottom of the multi year trading range at £35, and the stock market at the highs, something has to give soon here. Indeed, shareholders of Shire are paying the price of the anti-business tax inversion episode under the dormant President before Mr Trump. Due to this – the company should have been taken out 3 years ago by AbbVie, the company has been in limbo. Life sciences have boomed and the giants of pharma have consolidated in the meantime, but Shire has wilted.
At least from a trading view – and even without any further bid froth, one would expect from a price action perspective that while Shire remains above its 50 day moving average at 3,685p there could be an early 2018 rebound back towards the early summer 2017 resistance zone between 4,300p and 4,500p.