Every now and then, it emerges that Shire is to reshape its offer for Baxalta — the American pharmaceuticals group it has been courting since the latter was spun out of Baxter International and floated in the summer — and the Shire share price falls.
The latest report was followed by a 42p slide in the Shire price to £43.78, although I am not sure how seriously the market takes it. The price drops as a deal looks more likely because of concerns that Shire is overpaying for its target, while the market has always had its doubts over the savings and synergies the would-be buyer sees in a purchase.
There is also the belief that by buying an American business with a higher tax