This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Shire Rejects $46B AbbVie Offer

NEW YORK (The Deal) -- The M&A feeding frenzy in the healthcare sector continued on Friday as Ireland's Shire  (SHPG - Get Report) confirmed it had received and rejected a series of proposals from AbbVie (ABBV - Get Report), culminating in an offer that valued its stock at £27.2 billion ($46.6 billion).

The announcement came after Pfizer (PFE - Get Report) late last month abandoned a £69.4 billion indicative offer for AstraZeneca (AZN - Get Report) and followed speculation that hostile bid target Allergan Inc. was plotting a defensive takeover of Shire as a means to fend off Valeant Pharmaceuticals International and its $54 billion offer. Elsewhere devices maker Medtronic (MDT - Get Report) on Monday unveiled a $42.9 billion offer for Ireland's Covidien (COV), while Stryker (SYK) last month admitted it had been weighing a bid for hip replacement specialist Smith & Nephew (SNN - Get Report).

Shire said North Chicago-based Abbvie's latest, May 30 proposal valued its stock at 4,611 pence, based on AbbVie's weighted 30-day average share price. It broke down into 2,044 pence in cash and 0.7988 of an AbbVie share.

Like Pfizer, AbbVie wants to redomicile for tax purposes to the U.K. Shire said it had decided that the move carried "execution risks," while the offer itself, which it said was 23% more than Shire's Thursday closing price, was too low.

Shire's remit is to focus on specialist medical conditions--those that wouldn't be treated by a general practitioner--in areas of "significant unmet medical need." In January it closed a $4.2 billion takeover offer for ViroPharma (VPHM), of Exton, Pa., to gain drugs focused on treating and preventing hereditary angioedema, which causes spontaneous swelling of the skin and mucous membranes. And last month it arranged to pay $260 million upfront to buy San Diego-based Lumena Pharmaceuticals, which has two compounds in development to treat liver diseases in adults and children.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
COV $106.71 -1.26%
ABBV $66.07 0.00%
AZN $71.79 0.00%
MDT $77.61 0.00%
PFE $35.27 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs