21st Oct 2014 06:28
LONDON (Alliance News) - Shire PLC Tuesday said it is "disappointed" that the takeover offer from AbbVie Inc will not go ahead, but said it has maintained momentum throughout the offer period and it reiterated its target of USD10 billion product sales by 2020.
The pharmaceutical giant is now owed a break fee of USD1.635 billion from AbbVie, which is due before 1700 BST Tuesday.
Shire said that after AbbVie's board decided to withdraw its recommendation of the offer to its shareholders in light of new US Treasury measures to curb so-called tax inversions, it believed there is now "no realistic prospect" shareholders would vote for the deal. As a result, it has decided it is in the best interest to resolve the situation "as quickly as possible", and has released AbbVie from its obligation to proceed with the offer.
Shire said that it has made "important progress" since the start of the offer period, with trading since the end of its half year remaining strong. Shire will release its third quarter results on Friday.
"Shire has an exceptional track record of delivering value and growth. This growth profile has been accelerated by our new management team executing a clear and focused strategy. Importantly, we have maintained this momentum since July and made material progress across our business," said Chairman Susan Kilsby in a statement.
On Monday, Shire's interim Chief Financial Officer James Bowling announced that he has decided to leave to take up a chief financial officer position at Severn Trent PLC from the end of the first quarter of 2015.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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