Just two months after its spinoff from Baxter International(BAX), as it continues to reject acquisition interest from Shire(SHPG), Baxalta(BXLT) is in talks to acquire Ariad Pharmaceuticals(ARIA). Ariad jumped 42% on the news last Friday, valuing the oncology company at nearly $2 billion.
What is driving this potential acquisition? Is it the “Promise of the Baxalta Spark“? Perhaps it’s the “purpose-driven culture”. More likely it is an attempt to bulk up and make the company less interesting to Shire. Management clearly wants a chance to remain independent and show what they can do. If Shire gets more aggressive, however, they may have no choice but to agree to a shotgun wedding.
Disclosure: The author holds no shares of any stock mentioned