18 July 2014
Drugs giant AbbVie today sealed a £32 billion takeover deal for Shire hours before a Takeover Panel deadline for a firm offer.
Representatives of the two businesses have been locked in talks since Shire’s board recommended a £53.20 cash and share proposal from its US suitor on Monday — its fifth attempt to win over the FTSE 100 firm.
AbbVie wants to diversify its portfolio by bringing on board Shire’s Vyvanse hyperactivity drug. AbbVie would also shift its tax base to the UK to cut its US tax bill, but this loophole could soon be closed by US politicians. AbbVie will pay a break fee of 3% — more than £900 million — if it pulls out of the deal.
