Industryweek 6924 Abbvie Urges Shire Enter Takeover Talks

AbbVie Urges Shire to Enter Takeover Talks

June 25, 2014
U.S. drugmaker AbbVie says its $46 billion takeover bid for Shire Pharmaceuticals offers the Irish company a fat premium and the chance to become part of a global heavyweight.

NEW YORK – U.S. drugmaker AbbVie (IW 1000/248) on Wednesday said its $46 billion takeover bid for Shire Pharmaceuticals (IW 1000/802) offered the Irish company a fat premium and the chance to become part of a global heavyweight.

AbbVie, repeatedly rebuffed by Shire since an initial cash-and-shares acquisition proposal on May 6, reiterated its latest informal bid of £46.26 ($78.59) per share.

In a fresh effort to persuade Shire, a specialist in drugs for treating attention-deficit disorder and rare diseases, AbbVie emphasized its global marketing apparatus, financial heft and the appeal of relocating itself to Britain for tax purposes.

It said a deal would "build long-term value for the patients, employees and shareholders served by both companies and deliver superior returns to shareholders."

AbbVie said its offer marked a 58% premium to Shire's valuation in April, before U.S. drug giant Pfizer (IW 500/22) spurred takeover speculation and surging shares across the global pharmaceutical industry with its $117 billion offer for Britain's AstraZeneca (IW 1000/157).

Pfizer's offer was likewise built in part on scoring tax savings by relocating the company's statutory headquarters to Britain.

But like Shire, AstraZeneca told its suitor the offer fundamentally undervalued it.

One such deal has gone through. Last week, U.S. medical-device maker Medtronic (IW 500/78) agreed to buy Irish-based competitor Covidien (IW 1000/394) for $42.9 billion in a deal that will allow Medtronic to take advantage of Ireland's lower business tax rates.

AbbVie, known for the anti-inflammatory drug Humira among other products, has until July 18 to make a formal bid for London-listed Shire under British takeover rules.

In midday trade, AbbVie shares were up 2.6% to $54.96, while Shire shares gained 1.9% in London to £44.87.

Copyright Agence France-Presse, 2014

Popular Sponsored Recommendations

Navigate Complex Cybersecurity Requirements With Purpose-Built Technology Solutions

Dec. 6, 2023
The CMMC represents a critical mandate from the U.S. DOD. Aerospace & Defense manufacturers that handle controlled unclassified information (CUI) must comply with CMMC requirements...

Managing Supply Chain Risk in Aerospace and Defense!

Dec. 6, 2023
A&D companies need to adopt digital technologies that enable greater collaboration, active monitoring of leading risk indicators, & integration of supply chain risk factors into...

Gain a competitive edge with real-world lessons on private 5G networks

Nov. 16, 2023
The use of private networks in manufacturing applications is rapidly growing. In this paper, we present valuable insights and lessons learned from the field with the goal of enhancing...

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!