Shire readies to accept fresh AbbVie offer
Published 15/07/2014 | 02:30
DUBLIN-based drug-maker Shire said it is ready to recommend a new £31bn (€38.9bn) takeover offer from AbbVie, entering talks after receiving a fifth bid from the US firm.
Chicago-based AbbVie, which wants to buy Shire to cut its tax bill and diversify its product line-up, made the new offer of £53.20 per share on Sunday following a request from the London-listed group for an improvement on the previous approach at £51.15 per share.
It was reported on Saturday that Shire, a maker of drugs for rare diseases, had asked AbbVie to sweeten its offer to close to £53 per share, in order for it to recommend the deal.
In a statement, Shire said the new bid comprised £24.44 in cash and 0.8960 of new AbbVie shares and would result in Shire investors owning around 25pc of the combined new firm. AbbVie is eager to buy Shire both to reduce its US tax bill by moving its tax base and to diversify its drug portfolio.