Shire Plc rejects latest $46.5B takeover bid by AbbVie Inc.

Nathan Andrada – Fourth Estate Cooperative Contributor

London, United Kingdom (4E) – Irish drugmaker Shire Pharmaceuticals has turned down the latest bid from U.S. drug company AbbVie Inc., according to both companies’ statements released Friday.

The latest rejection comes after two failed by bids from AbbVie. The U.S.-based company is reportedly considering a fourth increase in its takeover bid for Shire after the European pharmaceutical firm nixed its latest offer worth $46.5bn, according to sources familiar with the matter.

AbbVie is also considering whether to present its proposal to Shire shareholders, the sources said, requesting not to be identified because the talks are still private. An acquisition by AbbVie would give the company access to Shire’s increasing number of treatments for rare diseases and may take advantage of a much lower tax rate.

AbbVie’s research focuses on neuroscience, women’s health, oncology, immunology, liver disease and kidney disease.

Several U.S. companies have been looking to acquire companies based in the U.K. and other European nations that have lower tax rates to reduce their tax burden to the U.S. federal government.

Sources:

http://www.bloomberg.com/news/2014-06-20/abbvie-offered-46-5-billion-for-shire-as-bid-rejected.html

http://www.usatoday.com/story/money/business/2014/06/20/shire-abbvie-deal/11034615/

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