Baxalta Remains Resistant to Shire Takeover Offer

Baxalta (NYSE:BXLT) executives remain resistant to the idea of a $30 billion hostile takeover by Shire Pharmaceuticals (LON:SHP).
According to an article on Fierce Biotech:

And after Baxalta issued its blanket rejection of Shire’s offer Tuesday evening, analysts began to line up to note the tough odds Shire faces in executing a takeover, which many believe will take a significantly higher offer for a company that relies heavily on a vulnerable portfolio of drugs for hemophilia.
In a letter from Baxalta CEO Ludwig Hantson to Shire’s Flemming Ornskov, Hantson noted that the company has only been public for a few weeks, and its share price hasn’t caught up with its prospects. Hantson also didn’t believe the numbers would work well for either company, particularly as it relates to the cuts Shire is planning in order to make the deal economical.

According to Hanston:

We do not believe that a combination of our two companies would be strategically complementary, or that our respective product portfolios would benefit from such a combination. And we do not think the combination would generate substantial operational or revenue synergies, which would be critical to any potential value creation for our shareholders.

Click here to read the full article on Fierce Biotech.