15th Oct 2014 06:11
LONDON (Alliance News) - Irish drug company Shire PLC Wednesday said it thinks Abbvie Inc should proceed with its recommended takeover offer for the company, and noted that Shire would be due a break fee of about USD1.64 billion if the deal is called off.
US drug maker AbbVie said late Tuesday that it intends to reconsider the recommendation made to its shareholders to adopt the takeover agreement to acquire Shire amid proposed tax rule changes in the US. It had sent Shire a notice about its intention to withdraw or modify its recommendation.
In its response Wednesday, Shire said its board will meet to "consider the current situation" and it will make a further announcement in due course.
"The board of Shire has not been provided with a detailed analysis of AbbVie's tax assumptions and AbbVie's notice does not quantify the anticipated financial impact of the US Treasury Notice on the combination," it said.
By Steve McGrath; [email protected]; @stevemcgrath1
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