NEW YORK (TheStreet) -- AbbVie (ABBV) fell in pre-market trading on Monday after Irish biopharmaceutical company Shire (SHPG) announced it would recommend a $53 billion takeover offer from the Humira maker, which could pave the road for one of the sector's largest mergers.
Chicago-based AbbVie offered a cash-and-stock deal equivalent to $91.10 a share for Shire over the weekend, which surpassed its previous offer of $51 billion. If completed, the deal would allow AbbVie to save millions of dollars in taxes via reincorporation in Britain, which has lower tax rates. Shire's headquarters are on the British island of Jersey.
Shire announced its shareholders would own approximately 25% of the combined AbbVie under the deal.
British regulators set a Friday, July 18 deadline to complete the deal. If it does not happen by that date, then AbbVie must abstain from negotiations for six months.
AbbVie was down 2.73% to $53.46 in pre-market trading, while Shire was up 1.61% to $253.06.ABBV data by YCharts