Ireland-based Shire's sweetened bid finally got Illinois-based Baxalta to say yes. It offered $2 billion more than its original bid that Baxalta rejected. Fred Katayama reports.
Two drug makers finally heading to the altar. Ireland's Shire sweetened its bid with cash to get Illinois-based Baxalta to say yes to a $32 billion deal. That's $2 billion more than the original all-stock offer that Baxalta rejected. It offers a roughly 38 percent premium to Baxalta's share price the day before Shire announced its initial bid in August. Fordham University assistant professor of finance Laura Gonzalez: SOUNDBITE: LAURA GONZALEZ, ASSISTANT PROFESSOR OF FINANCE, FORDHAM UNIVERSITY (ENGLISH) SAYING: "In 2016, the expectations is for this wave of mergers and acquisitions to continue. the uncertainty regarding Medicare and cost for pharmaceuticals is going to continue. Some of the patents are expiring, and all these big firms need to acquire young, promising pharmaceutical firms with promising pipelines." Baxalta specializes in developing treatments for rare blood conditions, cancers and immune system disorders. The company was created when Baxter International spun it off in July. Driving the deal :Shire's quest to become a global leader in rare diseases and expand its geographic reach. Shire develops specialty drugs in rare diseases, neuroscience, gastrointestinal and internal medicine. Baxalta getting a lift on the acquisition in early trading. Shire's shares gave ground.