AbbVie makes fresh bid for Shire
- AbbVie has made another buyout proposal to Shire, marking its fourth offer.
- The company has increased its cash-and-stock offer by 11% to $87.55 a share.
- The latest proposal values Ireland-based Shire at roughly $51.5 billion.
So far, Shire has not responded to AbbVie’s latest offer, which represents a 48% premium over Shire’s May 2 closing price. The deal would give Shire shareholders 24% of the new company. Plus, according to AbbVie CEO Richard Gonzalez, it would be a perfect combination of “two leading companies with leadership positions in specialty pharmaceuticals…would create a global market leader with unique characteristics and a compelling investment thesis.”
Gonzalez also cited AbbVie’s greater financial strength and R&D prowess, noting that there are numerous synergies between the two companies. A merger also would allow AbbVie to move its headquarters overseas, potentially creating significant tax savings.