Well, here's a spin... SHPG may be the one looking to acquire rather than another company looking to acquire it. I picture a tiny fish getting swallowed by a bigger fish getting swallowed by a very big fish. How long for this to all play out I wonder...
@@@@ViroPharma Inc. (VPHM), a producer of drugs that treat rare diseases, has attracted interest from suitors including European drugmakers Sanofi (SAN) and Shire Plc (SHP), said people with knowledge of the process. ViroPharma’s shares surged.
So is 2014 the year that a very big fish like BMY finally bites and buys SHPG? Back in May when that rumor surfaced SHPG was trading ~90. At a 50% premium BMY could have got it back then for ~140 where it is now. Hey BMY, I'll take the 50% premium now thanks :)
So they are the buyer. And the stock price is up on the news.I addition to being long SHPG since forever, I bought VPHM options after the rumor first broke out.... this worked out real sweet : )
@@@@Shire, which latched onto the rare disease drugs trend years before bigger rivals, said on Monday it had agreed to pay $50 a share in cash for ViroPharma, a 27 percent premium on Friday's closing price. Shares in the U.S. biopharmaceutical spiked nearly 30 percent in September on bid speculation.
Strange... I don't recall the stock ever moving up on rumors of it buying another company. Normally that action is reserved for the company that is the target of any buyout. Also, SHPG has been very good at preventing any takeover leaks in the past. Not sure what' to make of this right now.