Shares of Shire PLC (NASDAQ: SHPG) saw a solid gain on Wednesday after the firm announced that it received an offer to be acquired by Takeda Pharmaceutical.

Takeda said in a statement that buying Shire would enhance its R&D and its reach into the United States, where Shire has a big presence. The firm also mentioned its consideration for a takeover “is at a preliminary and exploratory stage and no approach has been made to the board of Shire.”

According to Reuters, Michael Wegener, managing partner at hedge fund Case Equity Partners, which has a stake in Shire, said:

Takeda publicly saying it is considering an approach for Shire inevitably means that other big pharma players including AbbVie, Novartis, Pfizer et al will equally be running the numbers with a very high likelihood of leading to a competitive M&A multi-bidder situation.

Takeda says that it has not approached Shire’s board. And under takeover rules in the United Kingdom, it has until April 25 to decide whether to make a bid.

For some quick background: Shire sells treatments for rare diseases and attention deficit disorder. And Takeda believes that buying it could create a global biopharmaceutical leader, boosting its position in the United States in oncology, gastrointestinal diseases and neuroscience.

Shares of Shire were last seen up 15% at $148.65, with a consensus analyst price target of $191.14 and a 52-week range of $123.73 to $192.15.

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