UK drug firm Shire recommends takeover by US rival AbbVie
- Published
Shire is known primarily as a maker of drugs to treat rare diseases
British drug firm Shire is recommending a takeover offer from US rival AbbVie after its most recent offer of 拢53.20 ($91.05) per share.
The board of the UK pharmaceutical company says it will be recommending the offer to shareholders.
The US company began bidding for Shire in May. The deal is an attractive one for AbbVie, as it could dramatically reduce its tax bill.
AbbVie had raised its offer to 拢51.15 ($87.54) per share last Tuesday.
Under the new offer, Shire shareholders would own approximately 25% of the combined new firm.
Shire, which is based in Basingstoke, Hampshire, said in a statement: "The board of Shire has indicated to AbbVie that it would be willing to recommend an offer at the level of the revised proposal to Shire shareholders, subject to satisfactory resolution of the other terms of the offer."
Shire's shares rose 5.9% to close at 拢48.70 in London on Friday, valuing the company at 拢28.7bn. AbbVie's closed at $54.95 (down 0.76%).
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