Market Report: Shire's New River bid could still be contested By Andrew Dewson Published: 07 March 2007 It looks like shareholders at Shire Pharmaceuticals are busy counting their chickens over the acquisition of New River Pharmaceuticals. The tender document was released on Friday and most investors and analysts have written off the possibility of a counter bid.
However, not everyone is convinced. At least four other pharmaceutical groups were interested in New River and had the company's Vyvanse attention deficit disorder treatment been approved as expected in December the chances are that Shire would not have been the sole bidder.
One trader said that although Randall Kirk, New River's founder, has pledged his 50.2 per cent stake in the company to Shire there is nothing stopping a counter bidder making an unsolicited approach. He said: "Shire's bid is a sitting duck waiting to be shot at." Shire climbed 24p to 1,089p as the broker UBS reiterated its 1,250p price target.