As soon as Baxalta (BXLT) was trading on its own after being spun off from Baxter International (BAX), it received a takeover offer from Shire Plc (SHPG). Baxalta rebuffed the intial offer, but months later it looks Baxalta is finally ready to discuss a deal with Shire.
From Stock Spinoffs.
Who says persistence doesn’t pay off? Months after having a buyout offer rejected and weeks afterreports of its continued interest in a deal, Shire (SHPG) has reportedly gotten recent Baxter International (BAX) spinoff Baxalta (BXLT) to sit down at the table for a little M&A pow-wow. Apparently the two are making progress on a deal which would include a higher price and some cash component – a key, but also tricky feature for the recent spinoff. The price tag will surely have to grow from its initial offer which was quickly rejected, especially as Baxalta has been on a roll of late, securing a number of FDA approvals in different areas. One advantage for Shire is that it’s corporate tax rate, courtesy of its Ireland HQ, is lower than Baxalta’s.