AbbVie today upped its bid for Shire from $46 B to $51.5 B. The offer included $38.41 per share in cash, and 0.8568 shares of AbbVie for each Shire share. Many analysts had predicted that AbbVie could get this deal done if they breached the $51 B mark. Now others are saying it will take $55 B. AbbVie for its part has spoken to the top 20 or so shareholders of Shire stock and likely has a better read. AbbVie has also indicated a willingness to go hostile if required. We'll see. I doubt Shire will get away at this point. AbbVie appears powerfully motivated to do its tax inversion with this deal, and its CEO Gonzalez says it can lower its tax rate to around 13%. Plus its offer represents a 75% premium over Shire's shareprice at the time AbbVie's interest became public. It's just a matter for the bean counters and lawyers now. See Fierce Biotech, First Word Pharma, and Bloomberg.
Posted by Bruce Lehr July 8th 2014.