April 24, 2018, 7:26 PM EDT
Takeda Pharmaceutical Co. slumped the most in almost five years Takena's shares tumbled as much as 9.3 percent in early Tokyo trading. Shire Plc to about 46 billion pounds ($ 64 billion), as the drugmakers sought more time to agree on a deal even after Shire's board said in a statement it is "willing to recommend" to Takeda's fifth proposal to its shareholders. Shire therefore agreed to extend a deadline required under U.K. takeover rules to May 8 for the companies to continue talks. Takeda confirmed the proposal in a separate statement.
The Japanese company is offering the equivalent of 49 pounds a share, including 27.26 pounds in stock and 21.75 pounds in cash, Shire said in the statement. That's a 60 percent premium to Shire's closing price on March 27, before Takeda disclosed his interest in the U.S. drugmaker.
0.839 new Takeda shares.
"The market is seeing this acquisition as negative," said Mitsushige Akino, to executive officer with Ichiyoshi Asset Management Co in Tokyo. "It's too big. Takeda might not be able to handle it. "
A completed deal would be the largest company in the world by an overseas target, and launch the two companies into the top ranks of global pharmaceutical giants. Still, some investors have been skeptical about Takeda's ability to go after a drugmaker.
Takeda has been rampaging up his takeover ambitions as Chief Executive Officer Christophe Weber faces challenges in ensuring the future of Japan's biggest drugmaker. Takeda needs lucrative new therapies.
Takeda, which has taken its market value slide to $ 33 billion since announcing its interest, is taking on a much bigger rival , Shire's shares, meanwhile, have soared 28 percent, giving the company a market capitalization of about $ 50 billion.
Takeda's Bonds Tumble After Bid for Shire Raised to $ 64 Billion
Takeda may take a the deal. Said P & S Global Ratings. S & P Global Ratings. Takeda's credit score, and investors have begun to pay higher premiums for holding their debt.
The banks were hedge risks by organizing a syndicate of banks short, according to Ryoji Yoshizawa, at S & P analyst in Tokyo. Takeda, the Nikkei reported.
Takeda last week raised its offer to 47 pounds a share and lifted the cash portion of the bid after three prior proposals were rejected.