AbbVie presses Shire shareholders for takeover


AbbVie (ABBV) CEO Richard Gonzalez has been holding discreet meetings with Shire (SHPG) shareholders in London this week, in another pursuit for a $46B takeover, Reuters reports.

AbbVie is looking to buy Shire mainly as a tax inversion, but to also diversify its drug portfolio.

The company made no mention of increasing its current bid, but under British takeover rules, it has until July 18 to make another offer or walk away.

SHPG -0.5% premarket

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Comments (7)
  • zack54
    , contributor
    Comments (142) | Send Message
     
    Gonzalez will make this work...and Shire share holders will be very happy with the deal....this is all about Shires Exec's protecting their positions and not about undervaluing Shire...the 2 together in 2 years will be a least a 50% increase from current valuations.
    3 Jul 2014, 05:52 AM Reply Like
  • Dr Joseph Haluska
    , contributor
    Comments (499) | Send Message
     
    Agree, at least. Sometimes, 1+1>2
    3 Jul 2014, 06:17 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (2108) | Send Message
     
    Yes and ABBV shareholders will have to pay capital gains as soon as the deal closes. Not good. American CEOs doing this type of thing are out of ideas. Shocked that no one in our do nothing Congress is trying to stop these types of deals. Anyway, only the "little people" pay taxes.
    3 Jul 2014, 07:41 AM Reply Like
  • zack54
    , contributor
    Comments (142) | Send Message
     
    Interesting point re the capital gains....not sure how that should make any difference if this is a long term hold
    3 Jul 2014, 08:51 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (2108) | Send Message
     
    A lot of people have large capital gains that don't want to pay taxes or if they want to leave to heirs...the capital gains are stepped up when someone dies and then no taxes are owed. Basically, this type of transaction is forcing shareholders to recognize gains now as if they sold the stock.
    3 Jul 2014, 08:55 AM Reply Like
  • JDoe20
    , contributor
    Comments (1321) | Send Message
     
    I am a long time Shire shareholder and at projected 50 / 50 cash to stock payment I would have a huge LT cap gain (and tax) I would be forced to realize. If it were all stock I could hold or take that gain over several years. Not sure a merged company would serve me better than Shire.

     

    I am VERY happy with Shire and probably wouldn't vote for current deal.
    3 Jul 2014, 04:39 PM Reply Like
  • jamespugh534
    , contributor
    Comments (15) | Send Message
     
    Leave well alone.
    5 Jul 2014, 03:57 AM Reply Like
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