Baxalta rejects Shire's proposal, saying it undervalues the company

USA-based Baxalta (NYSE: BXLT) has confirmed receipt Shire’s (LSE: SHP) unsolicited takeover approach, describing it as highly conditional.

Baxalta noted that it received this same proposal privately on July 10. In accordance with its fiduciary duties, Baxalta’s board of directors, in consultation with its financial and legal advisors, carefully reviewed the proposal and unanimously determined that it is not in the best interests of Baxalta or its shareholders.

Shire made its offer, an all-stock transaction valued at around $30 billion, public yesterday, adding to the flurry of acquisitions and mergers in the pharma sector, which so far this year has seen deals announced worth nearly $400 billion, an increase of 80% compared to a year ago, according to Thomson Reuters. Shire’s aim is to create a biotech power house in the rare diseases sector.