Business Irish

Friday 24 March 2017

Hedge fund 'sues' over missed Shire deal

Elliott Associates, founded by billionaire Paul Singer, had said in 2014 that it made money on its Shire position in the third quarter, but later suffered a loss when the share price tumbled on news the deal would collapse (Stock picture)
Elliott Associates, founded by billionaire Paul Singer, had said in 2014 that it made money on its Shire position in the third quarter, but later suffered a loss when the share price tumbled on news the deal would collapse (Stock picture)

Drug maker AbbVie said hedge fund Elliott Associates has sued the company alleging that it had made misrepresentations and omissions related to a failed attempt to buy Dublin-based Shire Plc.

AbbVie's proposal to buy Shire in a $55bn (€49.6bn) so-called tax-inversion deal was called off in 2014 after a US move to tighten tax rules. Inversion deals allow an acquiring company to move its headquarters to a takeover target's lower tax home base - in Shire's case Ireland.

Elliott Associates, founded by billionaire Paul Singer, had said in 2014 that it made money on its Shire position in the third quarter, but later suffered a loss when the share price tumbled on news the deal would collapse.

The case has been filed in the Cook County, Illinois Circuit Court, AbbVie said in a regulatory filing on Friday. (Reuters)

Irish Independent

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