NEW YORK (TheStreet) -- Shares of Shire (SHPG) are up 4.96% to $250.44 in heavy trading volume after it was reported that the drug maker is negotiating with AbbVie (ABBV) for a deal to combine the two firms after the U.S. company raised its takeover offer to about $51.5 billion, sources say, Bloomberg reports.
AbbVie CEO Richard Gonzalez met in New York with officials from Shire for the discussions, which are at an early stage, sources added, and the talks may not lead to an agreement, Bloomberg noted.
AbbVie shares are lower by -1.39% to $54.60.
TheStreet Ratings team rates SHIRE PLC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SHIRE PLC (SHPG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."