20th Jun 2014 06:48
LONDON (Alliance News) - US pharmaceutical research and development company AbbVie Inc Friday confirmed that it has made three indicative takeover approaches which have been rejected by British pharma company Shire PLC, and talks between the two companies have now ended.
Shire shares have been soaring in recent weeks, driven by speculation that it would be a target amid a pickup in merger and acquisition activity in the pharmaceuticals sector. In recent weeks, AstraZeneca PLC successfully fended off a takeover approach from US rival Pfizer Inc, while Valeant Pharmaceuticals Inc has taken a USD53 billion offer for Botox maker Allergan Inc direct to shareholders after repeatedly being rebuffed. Allergan was reported previously to have approached Shire.
Shire's shares closed down Thursday, but were among the top gainers on the FTSE 100 for several days before that. The stock is up 11.5% over the past month, 18.7% over the last three months, and up 79.8% over the past year, outperforming a 10.2% rose in the FTSE 100 over the same 12 months.
In a statement, AbbVie said it had first approached Shire in early May with a GBP39.50 cash and shares offer for each of the British company's shares. That would have valued Shire at GBP23.3 billion a share. Its third and latest offer was GBP46.26 a share in cash and shares, it said, valuing Shire's share capital at GBP27.2 billion.
Now that AbbVie has gone public with its approach, it has until July 18 to make a firm offer or to walk away.
Shire's biggest treatment area is medicines for attention deficit hyperactivity disorder, while it also makes drugs for rare genetic disorders and specialty diseases. AbbVie, which was spun out of Abbott Laboratories in 2012, makes most of its revenue from one drug, rheumatoid arthritis treatment Humira, and is looking to diversify its portfolio.
US pharmaceuticals companies are looking to do quick deals with foreign companies. That would allow them to base themselves abroad for tax purposes, lowering their corporate tax bills. US lawmakers are discussing moves to close this tax loophole.
By Steve McGrath; [email protected]; @SteveMcGrath1
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