Analysts say AbbVie needs to boost its offer 10% to bag Shire


According to Bloomberg News, the average estimate from five analysts of the price AbbVie (ABBV) needs to offer Shire plc (SHPG) (SHPGF) to get the deal done is ~51 pounds/share (30B pounds). This would be ~10% above its most recent offer of 27.3B pounds.

Panmure Gordon analyst Savvas Heophytou says, "It's all about price. I personally think this deal will get done."

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Comments (3)
  • CatchallInvesting
    , contributor
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    ABBV could take a flyer for less than the extra 3 billion dollars and buy the stem cell company ACTC. ABBV would be billions ahead but might then also have the key of the new field of regenerative medicine. If it did not work out quickly what would they loose except the rounding number in the Shire deal? There had been allusion that Shire was looking at ACTC recently. Also ABBV has known about ACTC since their days 20 years ago in the Worcester Biotechnology Park.
    Get control of fascinating science at a minimum. ACTC has recently cleaned up a score of legasy problems from past managements. Throwing extra money at what the future (Shire) might be could be extremely costly if the future comes out differently. What if 10 % more is not enough?
    25 Jun 2014, 08:20 AM Reply Like
  • User 24309323
    , contributor
    Comment (1) | Send Message
     
    The Shire aquisition is not being pursued on the grounds of improved drug discover prospects. In all probability it will damage those. It's driven by tax inversion opportunities. Like the Pfizer/AZ offer, the pharma business is taking its eye off the ball and focussing too much on tax avoidance.
    25 Jun 2014, 11:13 AM Reply Like
  • STREETRE2
    , contributor
    Comments (219) | Send Message
     
    ALKS might be a good alternative.
    28 Jun 2014, 12:26 PM Reply Like
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