Shire confirms it has entered into talks with AbbVie

Following reports by the Bloomberg news service, on Friday Ireland-based drugmaker Shire (LSE: SHP) confirmed that it has held a meeting with representatives of AbbVie (NYSE: ABBV), which is pursuing an unsolicited acquisition of the company.

Shire noted: “This statement is being made by Shire without the prior agreement or approval of AbbVie. A further update will be made when appropriate. Shareholders are strongly advised to take no action in relation to AbbVie’s proposal. There can be no certainty that any firm offer will be made nor as to the terms on which any firm offer might be made.”

AbbVie’s first three offer for Shire have so far been rejected as not adequately reflecting the value of the company, and Shire’s latest statement comes after it received a fourth, even higher offer of £51.15 per share, comprising of £22.44 in cash and 0.8568 ordinary shares, and 11% higher than the prior bid. This latest offer values Shire, a maker of neurological and rare diseases treatments, at some  $51.5 billion.

Shire’s shares rose 5.9% to £48.70 by close of London trading on Friday, while AbbVie slipped 0.7% to $54.96 in New York.