Jefferies analyst David Steinberg points out that following the recent market selloff, the value of Shire's (SHPG) outstanding equity-based bid for Baxalta (BXLT) has declined to $38 per share from $45. Shares of Baxalta closed yesterday down 84c to $35.24. Shire will likely have to improve its offer in order to get the company to the negotiating table, Steinberg tells investors in a research note. Shire could increase the exchange ratio to 0.1875 times, giving Baxalta investors a 32% premium, versus 19% previously, to the company's "unaffected" intrinsic value of $31.50 at current Shire market prices and potentially a 40%-plus premium if Shire shares respond positively to an agreement, the analyst estimates. Steinberg adds that other companies screening well as attractive takeover candidates include Akorn (AKRX), Anacor (ANAC), The Medicines Co. (MDCO), Revance (RVNC) and XenoPort (XNPT).