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Merger Time? Baxalta Shares Rip After Shire Takeover Report

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Merger Time? Baxalta Shares Rip After Shire Takeover Report
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Baxalta Inc (NYSE: BXLT) shares are up 3.4 percent on Thursday afternoon on the back of a newly issued Reuters report that calls for a merger with Shire PLC (ADR) (NASDAQ: SHPG) to be announced as soon as Monday. According to the outlet, Shire is preparing to unveil a $32.5 billion offer for Baxalta next week.

Baxalta's market cap at last trade was near $27.6 billion -- a 17 percent differential between the reported acquisition price.

Reuters added that the deal is comprised of about $48 per share in stock and $20 per share in cash.

Sources who disclosed this information asked not to be named, while both companies declined to comment to the outlet.

UBS: Baxalta Is A Buying Opportunity Regardless Of M&A

A recent note from UBS analyst Matt Miksic articulated the view that Baxalta shares should be considered by investors regardless of its discussions with Shire or any other peers. "[S]ince declining to engage Shire on its initial offer in August, the company has beat Q3 estimates, raised guidance for 2015, guided to an above-consensus outlook for 2016 and obtained two key new pipeline approvals (Adynovate and Vonvendi.)," he wrote on Monday.

Miksic had previously said Baxalta's haemophilia A had the "best feedback" UBS had ever seen in a 100-patient Evidence Lab survey.

Shares of the company are currently near $40.80, about 10 cents off their intra-day high. Shire shares are off 3.4 percent.

Latest Ratings for BXLT

DateFirmActionFromTo
Feb 2016UBSMaintainsBuy
Dec 2015BarclaysMaintainsEqual-Weight
Aug 2015William BlairInitiates Coverage onOutperform

View More Analyst Ratings for BXLT
View the Latest Analyst Ratings

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