Shire succumbs to AbbVie’s yet again increased offer of £53.20 per share

Ireland-headquartered Shire (LSE: SHP), which just  on Friday confirmed it had finally entered talks with suitor USA-based AbbVie (NYSE: ABBV), this morning revealed it has received a further (fifth) revised proposal to acquire the company, that the Shire board would be willing to recommend to shareholders.

The revised proposal comprises £24.44 in cash (the same as the last offer) and 0.8960 shares of new AbbVie per Shire share (up from 0.8568). Based on the AbbVie share price on 11 July 2014, AbbVie’s Revised Proposal has an indicative value of £53.20 ($91.05) per Shire share (versus £51.15 previous), valuing the company at more than £31 billion ($53.1 billion).Under the revised proposal, Shire shareholders would own around 25% of the combined new AbbVie. Shire’s shares rose 2.8% to £50.05 shortly after the market opened in London.

The Shire board’s willingness to recommend the new proposal is subject to satisfactory resolution of the other terms of the offer. Accordingly, the board is in detailed discussions with AbbVie in relation to these terms. The revised proposal remains subject to the pre-conditions set by AbbVie on July 8, including due diligence and the recommendation of the Board of Shire. There can be no certainty that any firm offer will be made, said Shire.