AbbVie Says Did Not Get Any Written Commitments Of Support For Its Bid For Shire

By RTT News, 

( - U.S. drugmaker AbbVie Inc. ( ABBV ) clarified certain press and newswire reports with respect to support for its transaction with Shire plc.(SHP.L, SHPG). AbbVie confirmed that it has not received any written commitments of support and accordingly retracts the statements. It acknowledged that in the absence of written statements of support from shareholders it is not in a position to make any statement of shareholder support.

On Tuesday, Shire said that its board will meet to consider revised buyout proposal from U.S. AbbVie, and will make further announcement in due course.

Meanwhile, Shire had advised its shareholders that not to take any action in relation to the AbbVie proposal.

Previously, AbbVie said that it made a fourth offer to acquire Ireland-based rival Shire, raising its offer by about 11 percent to 51.15 pounds per share.

Under AbbVie's revised indicative proposal, Shire shareholders would receive 22.44 pounds in cash and 0.8568 ordinary shares of New AbbVie for each Shire share held by them. The revised offer represented an indicative value of 51.15 pounds per share or $87.56 per share, as of July 7, 2014.

AbbVie's latest offer represented an increase of about 11 percent or approximately 3 billion pounds to its prior indicative offer value of 46.26 pounds per share. It also represents a 48 percent premium to Shire's closing share price of 34.67 pounds on May 2, 2014, the last practicable date prior to AbbVie's initial proposal.

AbbVie said it strongly encourages Shire shareholders to consider its fourth proposal and communicate their perspective to Shire's board in view of the July 18, 2014 deadline.

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This article appears in: News Headlines

Referenced Stocks: ABBV , SHPG

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