AbbVie Calls Off $55B Deal to Buy Shire, Cites New Treasury Rules

U.S. drugmaker AbbVie announced it is calling off its proposed $55 billion takeover of Irish pharmaceutical company Shire, and will pay an approximately $1.6 billion breakup fee as a result. AbbVie, which would have moved its tax base to Britain pending the acquisition, blamed the U.S. Treasury Department's new rules aimed at curbing tax inversions for the deal falling apart. AbbVie chairman and CEO Richard Gonzalez said on a conference call, 'Treasury's actions and stated willingness to enact further restrictions creates an environment of risk and uncertainty which makes proceeding not in the best interest of shareholders.' Gonzalez also announced a $5 billion share buyback plan and raised AbbVie's quarterly dividend by 16% to 49 cents.