AbbVie makes fourth Shire offer
pharmafile | July 9, 2014 | News story | Sales and Marketing | AbbVie, Abbott, Shire, buyout, merger
The AbbVie/Shire takeover saga rumbles on, with AbbVie raising its bid for the Ireland-based biopharma specialist to $51.5 billion.
The fact that it is AbbVie’s fourth bid for the company is a clear sign of intent: its previous offer valued the company at $46.5 billion.
Shire said it was unaware of AbbVie’s new offer before it was made public. In a statement Shire’s board said it “will meet to consider the proposal and a further announcement will be made in due course”.
The statement went on: “Shareholders are strongly advised to take no action in relation to the AbbVie proposal. There can be no certainty that any firm offer will be made nor as to the terms on which any firm offer might be made.”
AbbVie appears keen to make the deal: it has already released a series of documents to investors and analysts explaining why the combination would be ‘strategically compelling’ for both companies.
AbbVie, which became a standalone company itself in 2012 after it split from Abbott, says the acquisition would create more value for Shire than it would find on its own.
The initial cash and share proposal, £39.50 for each Shire share, came in May, while this latest weighs in at £51.1 per share – an 11% increase on the previous one of £46.26.
“This transaction is a combination of two leading companies with leadership positions in speciality pharmaceuticals that would create a global market leader with unique characteristics and a compelling investment thesis,” insists AbbVie chief executive Richard Gonzalez.
“AbbVie will bring greater financial strength and R&D experience to this combination that will enable both companies to reach their full potential for their shareholders and patients in need across the globe,” he adds.
The US company says it has spoken about its latest move “to Shire’s shareholders representing a majority of Shire’s outstanding shares”.
Adam Hill
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