Baxalta Shares Indicated Higher Amid Report Of Shire Interest

Deerfield, Illinois-based Baxalta Inc BXLT shares have been indicated as higher, rising 6.3 percent as of Monday's pre-market trading session amid a recent report of Shire PLC (ADR) SHPG acquisition interest. Baxalta's shares rose 6.3 percent in premarket trading. It was reported on Saturday by Bloomberg, that Shire Plc is in advanced talks to acquire Baxalta Inc. for about $32 billion in cash and stock, excluding debt, according to people familiar with the matter. The people also said that the two drugmakers may announce a deal as soon as this week. Baxalta's price being discussed is $46.50 to $48 a share, two of the people had stated. They said final details of the transaction are still being negotiated and the timing and structure of any offer may change. On Monday, Shire's stock fell 3.4 percent to 4,540 pence in London. Baxalta rebuffed an unsolicited $30 billion all-stock bid from Shire last July which had placed the company's valuation at $45.23 a share. Since then, the company has been seeking a higher offer which includes cash, people familiar with the matter said last month. The original bid was structured by Shire as an all-stock transaction to help preserve Baxalta's tax benefits from its July spinoff from Baxter International Inc BAX. Shire's acquisition of Baxalta would yield a combined tax rate of 16 percent to 17 percent. Baxalta has projected a tax rate of 23 percent in 2016. The combined company would generate $20 billion in sales by 2020, if a deal succeeds. There would be as many as 30 new drugs to launch over a five year period for diseases ranging from dry eye disease to hemophilia, Shire stated.