Monday, January 26, 2015

AbbVie CEO says the $46.5 billion offer is 'compelling' for Shire shareholders

AbbVie chief executive officer Richard Gonzalez told financial analysts Wednesday that his company's $46.5 billion offer for Shire, Plc., is "compelling," and he declined to rule out going hostile in its takeover attempt, Bloomberg News reported.

AbbVie CEO says the $46.5 billion offer is 'compelling' for Shire shareholders

Richard Gonzalez, CEO of AbbVie Inc., rings the opening bell Wednesday at the New York Stock Exchange. (Ben Hider, 2012 NYSE Euronext)
Richard Gonzalez, CEO of AbbVie Inc., rings the opening bell Wednesday at the New York Stock Exchange. (Ben Hider, 2012 NYSE Euronext)

AbbVie chief executive officer Richard Gonzalez told financial analysts Wednesday that his company's $46.5 billion offer for Shire, Plc., is "compelling," and he declined to rule out going hostile in its takeover attempt, Bloomberg News reported. A link to the Bloomberg story is here.

Shire's appeal is that it is incorporated in Jersey, one of the Channel Islands, and domiciled in Ireland, all of which means lower corporate taxes that AbbVie faces in the United States. AbbVie's headquarters is near Chicago. Shire has facilities in Wayne and Exton.

Meanwhile, Shire repeated Wednesday its earlier assessment that the offer under value's Shire's current and future value.

"Today’s announcement by AbbVie contains no new proposal and provides no material new information," Shire said in a statement. "The board of Shire has already considered this Proposal in detail and unanimously rejected it, concluding that it fundamentally undervalued the Company and its prospects. Shareholders are strongly advised to take no action in relation to the Proposal. There can be no certainty that any firm offer will be made, nor as to the terms on which any firm offer might be made. This statement is being made by Shire without the prior agreement or approval of AbbVie."

David Sell
About this blog
David Sell blogs about the region's pharmaceutical industry. Follow him on Facebook.

For Inquirer.com. Portions of this blog may also be found in the Inquirer's Sunday Health Section.

Reach David at dsell@phillynews.com.

David Sell
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