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Tuesday, August 4, 2015

Drugmaker Shire bids $30 billion for Baxter spin-off Baxalta, (NYSE: BAX)

Drugmaker Shire said on Tuesday it was seeking to purchase Baxalta, a company spun-off by Baxter International last month, for $30 billion to forge the leading global specialist in rare diseases.The London-listed group went public with its approach after the U.S. firm turned it down. Shire said its unsolicited all-share offer valued each Baxalta share at $45.23, based on Aug. 3 market prices. Shares in Baxalta had jumped 17 percent to $38.76 by around midday in New York.The Illinois-based firm, which has a staff of around 16,000, develops biotech treatments for rare blood conditions, cancers and immune system disorders. It had proforma revenue of $6 billion in 2014.Baxalta offers Shire a promising range of new products to complement its growing portfolio of high-priced treatments for rare or "orphan" diseases, analysts said. But there is no guarantee that Shire, itself the target of a failed takeover in 2014, will land its prey.

Baxter International Inc. (Baxter) is a diversified healthcare company. Shares of BAX traded higher by 2.696% or $1.065/share to $40.58. In the past year, the shares have traded as low as $34.77 and as high as $41.47. On average, 11005800 shares of BAX exchange hands on a given day and today's volume is recorded at 33897617.