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Reuters: AbbVie, Shire narrow in on takeover price

  • In latest round of takeover talks, Shire (SHPG) has informed AbbVie (ABBV) that it values itself at £31B ($53B), Reuters reports. The valuation is close to AbbVie's last bid of ~$51.5B, which it proposed on July 8.
  • The two companies met Friday to dicuss further details about the possible takeover, and are not far from closing the price gap, but will only have until the end of the week to make a decision.
Comments (4)
  • zack54
    , contributor
    Comments (113) | Send Message
     
    This deal will close by Tuesday...and will be below 53billion.
    13 Jul, 06:23 AM Reply Like
  • Tim'S
    , contributor
    Comments (106) | Send Message
     
    Very interesting, you may be right.
    13 Jul, 06:30 AM Reply Like
  • Small Pharma Analyst
    , contributor
    Comments (368) | Send Message
     
    Surprised Shire is only asking $53 B vs the $51.5 B already on the table. No reason to quibble over 3% difference so why not at least ask for another 10%? Most analysts were expecting the negotiations to go 10-15% higher.

     

    Still a possibility for an alternate offer although there are not many candidates. My guess would be Amgen. LLY could also benefit but they seem to be very focused on their internal pipeline. AZN also possible - no tax benefit but an opportunity to acquire a real pipeline vs their virtual one and stave off any future PFE threat.
    13 Jul, 08:24 AM Reply Like
  • JDoe20
    , contributor
    Comments (386) | Send Message
     
    I believe a take over premium is generally paid over fair value that is quoted at $53B. In addition, the whole reason for the bid, tax inversion savings which shpg should share, is not included in that number. I would think $60B would be closer to the number.
    13 Jul, 11:44 AM Reply Like
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