Takeover talk lifts shares in Shire

Shares in Shire hit a record high yesterday on expectations of a takeover as dealmaking sweeps the drugs sector, after Reuters reported the group had hired investment bank Citi as a defence adviser.

Potential acquirers are eyeing the pharmaceutical firm’s tax base in this country, where effective corporate tax rates are among the lowest in the world, as well as its fast-growing portfolio of drugs to treat hyperactivity and rare diseases.

Sources said the London-listed company was expecting to receive takeover approaches following a wave of deals in the healthcare sector focused on achieving lower tax bills. Shire and Citi declined to comment.