Shire rejects unsolicited $46.5 billion takeover offer from AbbVie

Ireland headquartered Shire (LSE: SHP) has this morning revealed that it has received, and rejected, an unsolicited – and highly conditional - takeover bid for the company from US drugmaker AbbVie (NYSE: ABBV), worth around £27.3 billion ($46.5 billion). Shire’s shares leapt 12% to £41.86 in early trading.

AbbVie also confirmed that it had “made an indicative approach to Shire with a merger proposal which was rejected by the board of Shire,” adding: “There can be no certainty that any firm offer will be made. Discussions are no longer ongoing.” Under UK takeover rules, the US drugmaker will have until July 18 to make a firm offer, or will go into a waiting period where it cannot do so for as long as six months.

The AbbVie proposal comprised £20.44 in cash and 0.7988 AbbVie shares per Shire share and involved a new US listed holding company with a UK tax domicile. Re-domiciling was a major factor in Pfizer’s unsuccessful $116 billion bid for AstraZeneca.