Sep. 23, 2014, 7:45 AM
- U.S. Treasury Secretary Jack Lew says that the Obama Administration is prepared to institute rules to stop tax inversion deals. If so, it will do so without a sliver of Republican support. Barclays analyst Michael Leuchten says, "Washington is playing for time. It makes them look good and it allows Congress to maybe get its act together and maybe do something on the legislative side."
- Mr. Lew's comments have spooked the market a bit. European companies already involved in deals or rumored to be targets are all under pressure due to the perception that some of the deals already announced may be at risk.
- The U.S. firm in the best position is Horizon Pharma (NASDAQ:HZNP). It completed its tax inversion transaction with Ireland-based Vidara Therapeutics last week.
- Related tickers: (MDT -0.4%)(COV -0.5%)(ABBV -0.6%)(SHPG -0.7%)(OTCQB:SHPGF -1.5%)(PFE -0.7%)(AZN -0.1%)(SNN +0.1%)(SYK -0.8%)
Jul. 9, 2014, 3:25 AM
- Strict British takeover rules has forced AbbVie (ABBV) to retract comments made yesterday by CEO Richard Gonzalez. In reference to the company's takeover bid for Shire (SHPG), Gonzalez announced that he believed major Shire investors were "generally supportive for the transaction." However, U.K. Takeover Panel rules state that a company cannot declare this claim unless it has it in writing from shareholders.
- AbbVie raised its offer for Shire to $51.3B yesterday. The latter has until July 18 to take up the offer.
Jul. 3, 2014, 5:27 AM
- 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
Jun. 25, 2014, 7:06 AM
- 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."
Jun. 12, 2012, 9:07 AM
BioMarin Pharmaceutical (BMRN) +4.8% premarket on rumors that Glaxo (GSK) is in advanced discussions toward a $5B buyout of BMRN. Last week, Shire (SHPGY, SHPGF.PK) also was said to be stalking the company. Glaxo is already engaged in a hostile $2.6B takeover bid for Human Genome Sciences.| Jun. 12, 2012, 9:07 AM