AbbVie,the Chicago-based biopharma concern,is continuing its courtship of Ireland's Shire PLC,despite repeated rejections on the grounds that AbbVie made an inadequate offer.It has made a third offer of 46 billion dollars,also promising a plan to buy back shares and offer shares as well as cash to Shire shareholders.*
Shire has several ADHD drugs in its portfolio,such as Adderall.The deal would also be an inversion for AbbVie,i.e.,by being Ireland-based,it would lower AbbVie's tax rate to 13% and free up overseas cash.That's significantly less taxes than US competitors pay.*
AbbVie was formerly part of Abbott Laboratories.It was spun off on 1 January 2013 as a global biopharma firm.With 25,000 workers,AbbVie has launched a Phase III study of Veliparib for Advanced Breast Cancer.
AbbVie claims the proposed combination is strategically compelling to AbbVie and Shire and would create a larger and more diversified biopharmaceutical company with multiple leading franchises and significant financial capacity for future acquisitions,investment and enhanced shareholder distribution and value creation.It offers attractive free cash flow and an enhanced return of capital policy.The new company would be listed in both London and on the NYSE.*
AbbVie(ABBV),Shire PLC(SHPG)
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