Deals & MarketsShire shares spike as AbbVie ups its offer

Shire shares spike as AbbVie ups its offer

US pharmaceuticals giant AbbVie has raised its bid for Irish-domiciled Shire to £51.15 per share, causing the company’s share price to rocket, it was revealed today.

US pharmaceuticals giant AbbVie has raised its bid for Irish-domiciled Shire to £51.15 per share, causing the company’s share price to rocket, it was revealed today.

In a deal reminiscent of Pfizer’s failed AstraZeneca bid, it’s thought that the takeover would allow the US buyer to take advantage of attractive tax benefits and cost savings. The purchase would mean that at least 20% of the newly combined company’s shareholders would be non-US, opening up opportunities for tax inversion. With experts at Jefferies suggesting that that there is little product or portfolio-based rationale for the merger, many see this as a likely next step should the bid be accepted.

Last month, AbbVie made a series of offers to Shire, starting at £39.50 per share, but all were rejected. The latest bid marks another significant jump from the last offer, of £46.26 per share. Shire’s share price leapt following today’s announcement, peaking at £49.25 earlier today.

Related Articles

India-US trade corridor: Accelerating growth with reverse factoring

Deals & Markets India-US trade corridor: Accelerating growth with reverse factoring

4m Vinod Parmar
This week in treasury: Top 10 headlines you should know about

Brexit This week in treasury: Top 10 headlines you should know about

9m Victoria Beckett
GTreasury & Visual Risk announce partnership to focus on integrated treasury and new markets

Asia Pacific GTreasury & Visual Risk announce partnership to focus on integrated treasury and new markets

9m Guest Writer
Insurance M&A plunges in H1

Deals & Markets Insurance M&A plunges in H1

11m Victoria Beckett
Tokyo champions free trade through TPP revival

Asia Pacific Tokyo champions free trade through TPP revival

1y Miha Hribernik
Economies set for highest government debt since 2000: Fitch

Deals & Markets Economies set for highest government debt since 2000: Fitch

1y Victoria Beckett
Finastra launches from Misys-D+H union

Deals & Markets Finastra launches from Misys-D+H union

1y Alara Basul
Finastra becomes third-largest fintech company

Deals & Markets Finastra becomes third-largest fintech company

1y GTNews