Hedge fund 'sues' over missed Shire deal
Published 08/08/2016 | 02:30
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)