Shire Still Confident In Baxalta Transaction Despite Treasury Headwinds

Shares of

Shire PLC (ADR)SHPG

were trading higher by nearly 6 percent late Wednesday afternoon as the company issued a public comment regarding its proposed acquisition of

Baxalta IncBXLT

Ireland-based Shire

said in a press release that it still "anticipates" the proposed merger would receive the necessary regulatory approval and will proceed as planned. "The combination of Shire and Baxalta is based on a strong strategic rationale to create the leading global biotechnology company focused on rare diseases," Shire said in its press release. "The company currently expects to complete its proposed combination by mid-2016 as previously announced."

The Financial Times

noted that Shire's acquisition of Baxalta would free up tax benefits of up to $260 million by 2020. However, the publication cited analysts at Credit Suisse who said that the tax benefits may be uncertain. "With Shire being an Irish tax domiciled company we are not clear to what extent these rules may be important," the analysts told the Financial Times. "But we do not see the possible loss of this level of tax as likely to derail management's strong desire to complete the transaction."

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