Shire makes $30 billion overture for Baxalta

In what might be more in line with investors’ expectations, Ireland-headquartered Shire (LSE: SHP) today revealed that it had approached Baxalta (NYSE: BXLT) to combine the companies in an all-stock transaction worth around $30 billion, aiming to create a rare diseases power house. However, Baxalta has declined to engage in substantive discussions regarding the proposal, said Shire.

Baxalta shareholders would receive, for each Baxalta share, 0.1687 Shire ADRs. The proposal implies a value of $45.23 per Baxalta share and represents a significant premium of 36% over Baxalta's stock price as of August 3, 2015.

Shares in Baxalta, which was spun-out from Baxter international just last month, leapt 19% to $39.50 in pre-market trading, while Shire fell 4.28% to £54.90 in early London action, having dropped as much as 7.9%.