What's going on?

UK based drug maker Shire has attempted a $30bn hostile takeover for Baxalta (a pharamecuetical company with a focus on rare diseases). Shire stated it made the attempt after an initial offer was declined by Baxalta�s board.

What does this mean?

Shire has said the combined two companies would create a company focussed on rare disease drugs with $20bn in product sales by 2020. Under the current offer, Shire�s shareholders would hold 63% of the new group, with the rest owned by Baxalta shareholders. However, Shire�s stock slid 3.9% on the news.

Why should I care?

1. Shire has said the combined two companies would create a company focussed on rare disease drugs with $20bn in product sales by 2020. The deal would double Shire�s size in revenue and triple its employee base. 2. Should the deal go through, Baxalta�s share price should rise�to�Shire�s current takeover offer at $45.23 a share.