Shareholders Foundation, Inc.

Baxalta Inc (NYSE:BXLT) Shareholders Alert: Lawsuit Against Buyout by Shire Plc

A lawsuit was filed for investors in shares of Baxalta Inc (NYSE:BXLT) in connection with the proposed takeover was announced and NYSE:BXLT stockholders should contact the Shareholders Foundation.


San Diego, CA -- (SBWIRE) -- 02/10/2016 -- A shareholder in Baxalta Inc filed a lawsuit against the takeover of Baxalta Inc by Shire plc. On January 11, 2016, Shire plc and Baxalta Inc announced that the boards of directors of both companies have reached an agreement under which Shire will combine with Baxalta.

Investors who purchased shares of Baxalta Inc (NYSE:BXLT) and currently hold any of those NYSE:BXLT shares have certain options and should contact the Shareholders Foundation at or call 858-779-1554.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:BXLT stockholders by agreeing to sell Baxalta Inc too cheaply via an unfair process to Shire plc.

Under the agreement, Baxalta Inc (NYSE:BXLT) shareholders will receive $18.00 in cash and 0.1482 Shire ADS per Baxalta share. Based on Shire's closing ADS price on January 8, 2016, this implies a total current value of $45.57 per NYSE:BXLT share, representing an aggregate consideration of approximately $32 billion.

However, the plaintiff claims that the proposed consideration NYSE:BXLT shareholders will receive is grossly inadequate and undervalues Baxalta Inc. Indeed, at least one analyst has set the high target price for NYSE:BXLT shares at $47.00 per share. Furthermore, Baxalta Inc reported that its annual Total Revenue rose from $5.31 billion in 2012 to over $5.95 billion in 2014 and that its Net Income increased from over $1.24 billion in 2012 to over $1.73 billion in 2014. In addition, the plaintiff alleges that the process is also unfair to NYSE:BXLT stockholders. The plaintiff claims that the defendants agreed to preclusive deal protection devices, such as a no-solicitation and a $369 million termination fee provision, that locked up the proposed transaction and deter other bidders from making a competing offers for the company.

Shares of Baxalta Inc (NYSE:BXLT) closed on February 8, 2016, at $36.46 per share.

Those who are current investors in Baxalta Inc (NYSE:BXLT) shares have certain options and should contact the Shareholders Foundation.

Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739