14th Jul 2014 06:50
LONDON (Alliance News) - FTSE 100 listed Shire PLC said Monday it is "willing to recommend" a raised takeover offer from US drugs maker AbbVie Inc's to shareholders.
The revised proposal comprises GBP24.44 in cash and 0.8960 shares of the new company for each existing Shire share. Based on AbbVie's share price on Friday, the new offer has a value of GBP53.20 per Shire share, or GBP31.33 billion in total.
Under the new proposal Shire shareholders would own around 25% of the new company.
Shire said its board is in detailed discussions with AbbVie regarding other terms of the offer, and cautioned there could be certainty that any firm offer will be made. Under UK takeover rules, AbbVie currently has until July 18 to make a formal bid or walk away.
Shire had previously rebuffed AbbVie's first three proposals for the company. However, after it made a sweetened proposal of GBP51.15 per share last week the company said it would meet to consider the proposal. Shire said Monday that it had requested and had received the revised proposal from AbbVie on Sunday.
AbbVie said last Tuesday that it had met with, or spoken to a large number of Shire shareholders who "collectively represent a majority of Shire's outstanding shares". However, last Wednesday it retracted any statements which suggested it had the support of Shire shareholders.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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