New York, NY, United States (4E) – The U.S. drug maker AbbVie announced Tuesday that it had raised its bid to around $51.6bn to purchase Irish drug maker Shire that had rejected its previous takeover proposals.
The acquisition means AbbVie can reincorporate in the UK and save millions on taxes, a process also called as inversion. AbbVie is offering a very full price to pursue a deal in part to save on taxes.
The exceptionally generous premium proposal presents a 48 percent premium over Shire’s closing price of 34.67 British pounds ($58.55) per share on May 2, the day before AbbVie made its first proposal.
AbbVie has increased its bid four times, but is yet to convince Shire to enter discussions. Under UK acquisition rules, AbbVie is required to make a solid offer until July 18 or walk away for up to six months.
Shire said that AbbVie made a revised offer to the market without advising the company of the higher bid, and said its board of directors would meet to consider the proposal.