Market Report: Shire chief executive vows to continue pursuing Baxalta

Flemming Ornskov, the chief executive of Shire, is not a man who gives up easily. The Irish drug maker’s boss vowed to continue pursuing Baxalta despite the US rare disease firm’s apparent lack of interest in talks.

Mr Ornskov claimed he would not give up easily. He also insisted Baxalta was not the only option, but stopped short of admitting interest in Radius Health, which the FTSE 100 company has been linked with.

The comments – as well as a better-than-expected 11 per cent rise in third-quarter earnings – helped Shire jump 196p to 4,641p. Since its $30bn failed bid at the start of August, just four weeks after Baxalta was spun out of parent Baxter International, Shire’s share price has fallen more than 20 per cent.

Shire’s all-stock offer in August was worth $45 a share to Baxalta shareholders at the time. Now, it is worth just over $36 per share, making it even less attractive.

Hopes of continued economic stimulus from the ECB and a cut in China’s interest rates lifted the FTSE 100 by 67.8 points to 6,444.08, its highest point in two months.

Tech shares were among the winners after strong third-quarter earnings from Google, Amazon and Microsoft, with iPhone chipmaker Arm Holdings a beneficiary, 36p higher at 1,073p.

Publisher-turned-education provider Pearson ended a dreadful week at the bottom of the blue-chip ladder, down another 49.5p to 900.5p. Its profit warning wiped almost £2bn off its market cap this week – double what it bagged from the sale of the FT.

Investors jumped on board roadside recovery group AA as Berenberg’s bullish 350p target price drove the shares 14.1p higher to 276.6p.

On AIM, Hutchison China MediTech jumped 175p or 7 per cent to 2,612.5p as it revealed a $10m payment is due from US drug maker Eli Lilly after a joint treatment passed a Phase 2 study.

Shares in Greek mobile business software firm Globo, which have halved since June, were suspended after a short-selling attack from America’s Quintessential Capital Management.