Cash sweetens the pill as Shire closes in

Flemming Ornskov, Shire’s chief executive, says he will walk away from the Baxalta deal if a price cannot be agreed
Flemming Ornskov, Shire’s chief executive, says he will walk away from the Baxalta deal if a price cannot be agreed
CHRIS HARRIS/THE TIMES

Shire appears to be inching towards an agreement with Baxalta, of the United States, the producer of specialist treatments for cancer and haemophilia that the Dublin-based pharmaceuticals company has been trying to buy since last summer.

An initial approach, offering only Shire shares, was rejected by Baxalta in July. This valued its stock at $45.23 at the time. It has been reported since then that the Irish company has sweetened its offer by throwing in a cash element, said to be worth $8 billion.

A report at the weekend suggested that the two were close to agreeing a price, said to be between $46.50 to $48 for each Baxalta share, valuing the business at about $32 billion.

Shire refused to comment on the latest update,