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| Shire jumps on possible offer from Japan's Takeda, markets nervous after tech shakeout - live | Shire jumps on possible offer from Japan's Takeda, markets nervous after tech shakeout - live |
| (35 minutes later) | |
| Here’s our story on the possible takeover of Shire by Japan’s Takeda: | |
| Shares in the UK-listed drugmaker Shire surged after Japan’s biggest pharmaceutical company, Takeda Pharmaceutical, said it was considering making a takeover approach. | |
| Shire’s shares jumped as much as 33% to £38.79 on the news, and later traded 17% higher at £36, valuing the company at £32.8bn. Takeda’s market value is about £29bn, around the same as Shire’s at last night’s closing price. | |
| Shire is best known for its ADHD drug Adderall but its focus in recent years has been on rare diseases. The company is based in Dublin for tax purposes but run from Boston. Most of its operations are in the US. | |
| The news comes three-and-a-half years after US firm AbbVie abandoned its agreed $54bn (£34bn) takeover of Shire, after a US clampdown on so-called tax inversions by US companies buying an overseas business to secure a lower tax rate. | |
| Shire then turned acquiror and completed its $32bn purchase of US firm Baxalta last June. In November it reported a drop in sales of haemophilia drugs, which became its biggest source of revenue following the deal. | |
| The full report is here: | |
| Here is the full statement from Takeda, which includes more detail of the Japanese company’s thinking: | Here is the full statement from Takeda, which includes more detail of the Japanese company’s thinking: |
| Takeda believes that a potential transaction with Shire presents an opportunity to advance Takeda’s stated Vision 2025, build on its current strong momentum, and create a truly global, value-based Japanese biopharmaceutical leader. In particular, a transaction with Shire would: | Takeda believes that a potential transaction with Shire presents an opportunity to advance Takeda’s stated Vision 2025, build on its current strong momentum, and create a truly global, value-based Japanese biopharmaceutical leader. In particular, a transaction with Shire would: |
| · strengthen Takeda’s core therapeutic areas of oncology, GI and neuroscience | · strengthen Takeda’s core therapeutic areas of oncology, GI and neuroscience |
| · accelerate Takeda’s vision to be a leader in specialized medicines that are transformative to patients through the addition of Shire’s leading global rare disease franchise | · accelerate Takeda’s vision to be a leader in specialized medicines that are transformative to patients through the addition of Shire’s leading global rare disease franchise |
| · further enhance Takeda’s robust R&D strategy, concentrating on key therapeutic areas | · further enhance Takeda’s robust R&D strategy, concentrating on key therapeutic areas |
| · reinforce a strong and large-molecule focused late-stage pipeline within Takeda’s core therapeutic areas to complement Takeda’s own pipeline and discovery capabilities | · reinforce a strong and large-molecule focused late-stage pipeline within Takeda’s core therapeutic areas to complement Takeda’s own pipeline and discovery capabilities |
| · balance Takeda’s geographic focus to align with the market opportunity in the U.S. | · balance Takeda’s geographic focus to align with the market opportunity in the U.S. |
| · drive financial value from a strong combined financial profile | · drive financial value from a strong combined financial profile |
| Clearly defined strategic and financial objectives are core to Takeda’s disciplined approach to acquisitions, including in relation to its dividend policy and credit rating, which are well-established. Any potential offer for Shire, if made, would have to align with this strict investment criteria. | Clearly defined strategic and financial objectives are core to Takeda’s disciplined approach to acquisitions, including in relation to its dividend policy and credit rating, which are well-established. Any potential offer for Shire, if made, would have to align with this strict investment criteria. |
| Back to Shire: | Back to Shire: |
| Shire's been tipped as a takeover target for ages - Takeda biting | Shire's been tipped as a takeover target for ages - Takeda biting |
| Shire #SHP shares adding 18pts to the FTSE 100 today and lifting it off the lows - announcement at 10:23 clear to sees on index pic.twitter.com/DzDRxo8yUb | Shire #SHP shares adding 18pts to the FTSE 100 today and lifting it off the lows - announcement at 10:23 clear to sees on index pic.twitter.com/DzDRxo8yUb |
| More from the CBI’s high street survey: | More from the CBI’s high street survey: |
| #Retail sales fell on a year ago as cold weather gave retailers the chills, according to March #CBI_DTS https://t.co/DGwqkh3E6T pic.twitter.com/AqvhErsomL | #Retail sales fell on a year ago as cold weather gave retailers the chills, according to March #CBI_DTS https://t.co/DGwqkh3E6T pic.twitter.com/AqvhErsomL |
| Online #retail sales growth in the year to March slowed to its lowest since records began in 2009 #CBI_DTS https://t.co/DGwqkh3E6T pic.twitter.com/c97VsGMOSU | Online #retail sales growth in the year to March slowed to its lowest since records began in 2009 #CBI_DTS https://t.co/DGwqkh3E6T pic.twitter.com/c97VsGMOSU |
| More bad news for the high street, with a new survey showing a slump in sales this month. Reuters reports: | More bad news for the high street, with a new survey showing a slump in sales this month. Reuters reports: |
| British retail sales fell for the first time in five months in March as heavy snowfall combined with the financial strains on many households, a survey by the Confederation of British Industry showed on Wednesday. | British retail sales fell for the first time in five months in March as heavy snowfall combined with the financial strains on many households, a survey by the Confederation of British Industry showed on Wednesday. |
| The CBI distributive trades survey’s retail sales balance fell to -8 from +8 in February, confounding a median forecast of +15 in a Reuters poll of economists. | The CBI distributive trades survey’s retail sales balance fell to -8 from +8 in February, confounding a median forecast of +15 in a Reuters poll of economists. |
| “Against a backdrop of stagnating household incomes and weak consumer confidence, the lengthy cold snap earlier this month has heaped added pressure on retailers,” Ben Jones, a CBI economist, said. | “Against a backdrop of stagnating household incomes and weak consumer confidence, the lengthy cold snap earlier this month has heaped added pressure on retailers,” Ben Jones, a CBI economist, said. |
| “Freezing conditions and transport disruption caused people to avoid the high street. With many forced to work from home, telecoms firms saw record internet traffic, yet on-line shopping slowed sharply given the potential for disrupted deliveries.” | “Freezing conditions and transport disruption caused people to avoid the high street. With many forced to work from home, telecoms firms saw record internet traffic, yet on-line shopping slowed sharply given the potential for disrupted deliveries.” |
| A measure of sales for the time of year was the weakest since April 2013, the survey showed. | A measure of sales for the time of year was the weakest since April 2013, the survey showed. |
| Retailers expected sales volumes and orders to grow in April but only at a subdued pace. | Retailers expected sales volumes and orders to grow in April but only at a subdued pace. |
| Elsewhere, the latest report from the Bank of England’s network of regional agents has just come out with some good news to cheer British workers. Used to detect early warning signs for the economy, the quarterly report compiles the views of businesses recorded by the Bank’s 12 regional outposts. | Elsewhere, the latest report from the Bank of England’s network of regional agents has just come out with some good news to cheer British workers. Used to detect early warning signs for the economy, the quarterly report compiles the views of businesses recorded by the Bank’s 12 regional outposts. |
| In their latest assessment, the agents say companies are handing out pay rises worth between 2.5% and 3.5% - which would be inflation-busting for staff at the top end of that range. Firms are also telling the agents inflation is beginning to fade. | In their latest assessment, the agents say companies are handing out pay rises worth between 2.5% and 3.5% - which would be inflation-busting for staff at the top end of that range. Firms are also telling the agents inflation is beginning to fade. |
| Elsewhere in the report for the first three months of the year, there’s an interesting look at how company chief executives are preparing for Brexit. Apparently, two fifths from more than 3,000 firms surveyed are not spending any time at all each week on Brexit. They had better hope the government’s transitional arrangements, agreed in principal earlier this month, will help smooth the process as advertised. | Elsewhere in the report for the first three months of the year, there’s an interesting look at how company chief executives are preparing for Brexit. Apparently, two fifths from more than 3,000 firms surveyed are not spending any time at all each week on Brexit. They had better hope the government’s transitional arrangements, agreed in principal earlier this month, will help smooth the process as advertised. |
| This is either a massive sign of complacency, or the whole Brexit thing really isn't much to worry about. Bank of England agents survey shows 41% of CEOs spend no time at all planning for Brexit... pic.twitter.com/hPNC24A4Uc | This is either a massive sign of complacency, or the whole Brexit thing really isn't much to worry about. Bank of England agents survey shows 41% of CEOs spend no time at all planning for Brexit... pic.twitter.com/hPNC24A4Uc |
| Meanwhile, there’s a contrarian view over the collapse of Carillion. Far from being the disaster for the wider construction industry forecast by experts, firms tell the agents it hasn’t had much of an impact at all. | Meanwhile, there’s a contrarian view over the collapse of Carillion. Far from being the disaster for the wider construction industry forecast by experts, firms tell the agents it hasn’t had much of an impact at all. |
| There has been “little evidence of a significant impact on the supply chain or on the availability of credit to the sector” so far, the agents report. | There has been “little evidence of a significant impact on the supply chain or on the availability of credit to the sector” so far, the agents report. |
| Shire shares - which climbed as high as £38.79 on news of the possible approach by Takeda - have come off their best levels. | Shire shares - which climbed as high as £38.79 on news of the possible approach by Takeda - have come off their best levels. |
| The rather conditional nature of the Japanese statement means Shire is now at £35.45, still 15% better on the day. | The rather conditional nature of the Japanese statement means Shire is now at £35.45, still 15% better on the day. |
| Takeda says it is at a preliminary and exploratory stage in considering a bid, and no approach has been made to the Shire board. | Takeda says it is at a preliminary and exploratory stage in considering a bid, and no approach has been made to the Shire board. |
| Meanwhile Takeda - Japan’s biggest pharmaceutical company - is worth some £29bn. This is less than Shire’s value after today’s jump, but around the same as the UK-listed company was worth at last night’s closing price. | Meanwhile Takeda - Japan’s biggest pharmaceutical company - is worth some £29bn. This is less than Shire’s value after today’s jump, but around the same as the UK-listed company was worth at last night’s closing price. |
| Shire is worth £35bn after its shares jumped to £38 on the news of Takeda’s possible approach. | Shire is worth £35bn after its shares jumped to £38 on the news of Takeda’s possible approach. |
| Breaking news: | Breaking news: |
| Pharmaceutical group Shire has soared 25% after Japan’s Takeda says it is considering making a takeover approach to the company. | Pharmaceutical group Shire has soared 25% after Japan’s Takeda says it is considering making a takeover approach to the company. |
| Takeda has until 5pm on 25 April to decide whether to make a firm bid or walk away. | Takeda has until 5pm on 25 April to decide whether to make a firm bid or walk away. |
| The Easter break couldn’t have come at a worse time for stock markets, says David Morrison, senior market strategist at GKFX: | The Easter break couldn’t have come at a worse time for stock markets, says David Morrison, senior market strategist at GKFX: |
| Investors were already on edge having been shocked by February’s equity sell-off triggered by the dual spike in volatility and bond yields. Despite a strong rebound, the major stock indices remain fragile with many in danger of breaking back below some major technical levels – in particular, the lower level of the S&P’s bullish trendline advance since February 2016. This has been brought sharply into focus with the sell-off in tech stocks, which have lead the market rally for so long, catalysed by the scandal surrounding Facebook’s cavalier attitude to its users’ data. | Investors were already on edge having been shocked by February’s equity sell-off triggered by the dual spike in volatility and bond yields. Despite a strong rebound, the major stock indices remain fragile with many in danger of breaking back below some major technical levels – in particular, the lower level of the S&P’s bullish trendline advance since February 2016. This has been brought sharply into focus with the sell-off in tech stocks, which have lead the market rally for so long, catalysed by the scandal surrounding Facebook’s cavalier attitude to its users’ data. |
| Now we have a long holiday weekend which coincides with the close of the first quarter. Once again, bonds are in focus – particularly the US 10-year Treasury. But this time yields have slumped with the 10-year crashing back below the key 2.80% level which has held as support for the past six weeks. Investors are piling back into the perceived “safe haven” of fixed income as stock markets slide... | Now we have a long holiday weekend which coincides with the close of the first quarter. Once again, bonds are in focus – particularly the US 10-year Treasury. But this time yields have slumped with the 10-year crashing back below the key 2.80% level which has held as support for the past six weeks. Investors are piling back into the perceived “safe haven” of fixed income as stock markets slide... |
| And this comes against a backdrop of tighter monetary policy from the Federal Reserve, concerns over the outbreak of trade wars and worries about changes in key White House personnel leading to a more hawkish foreign policy. All-in-all, investors will see plenty of reasons to reduce equity exposure as we head into the weekend. | And this comes against a backdrop of tighter monetary policy from the Federal Reserve, concerns over the outbreak of trade wars and worries about changes in key White House personnel leading to a more hawkish foreign policy. All-in-all, investors will see plenty of reasons to reduce equity exposure as we head into the weekend. |
| Markets could be in for a run of volatility similar to the summer of 2015, says Chris Beauchamp, chief market analyst at IG: | Markets could be in for a run of volatility similar to the summer of 2015, says Chris Beauchamp, chief market analyst at IG: |
| Markets remain under pressure as the sell-off in tech spreads once more to the wider equities space. The bounce on Tuesday looks like a flash in the pan, with more and more investors heading to the exit. | Markets remain under pressure as the sell-off in tech spreads once more to the wider equities space. The bounce on Tuesday looks like a flash in the pan, with more and more investors heading to the exit. |
| It is looking increasingly likely that we have a re-run of August 2015 on our hands; equities then had months of volatility to contend with before the rally resumed. With trade wars and the tech scandal weighing on sentiment we may well have more downside to content with... | It is looking increasingly likely that we have a re-run of August 2015 on our hands; equities then had months of volatility to contend with before the rally resumed. With trade wars and the tech scandal weighing on sentiment we may well have more downside to content with... |
| The rout in global growth stocks has been seen in the falls in mining and bank names in London. Particularly hard hit among the banks are the Asia-focussed giants HSBC and Standard Chartered, while miners have seen further outflows as investors downgrade their optimistic views on global economic expansion. | The rout in global growth stocks has been seen in the falls in mining and bank names in London. Particularly hard hit among the banks are the Asia-focussed giants HSBC and Standard Chartered, while miners have seen further outflows as investors downgrade their optimistic views on global economic expansion. |