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PRESS: AbbVie CEO To Put Pressure On Shire With Shareholder Talks - The Financial Times

June 29, 2014

Hana Stewart-Smith

LONDON (Alliance News) - US-based drugmaker AbbVie Inc's Chief Executive Richard Gonzalez is set to hold talks with investors of Shire PLC when he flies to London this week, the Financial Times reported late Sunday.

Gonzalez will speak to shareholders in an effort to increase pressure on Shire's board to enter negotiations, after it rejected three indicative offers. AbbVie first approached Shire in early May with a GBP39.50 cash and shares offer, that would have valued Shire at GBP23.3 billion a share. Its third and latest offer was GBP46.26 a share in cash and shares, it said, valuing Shire's share capital at GBP27.2 billion.

Shire has rejected the offers as undervaluing the company. Analysts and bankers predict that AbbVie will up its bid, with Barclays analysts saying it could pay up to GBP55 a share, and Bank of America Merill Lynch claiming it could raise the bid as high as GBP62.

Under UK takeover rules AbbVie has until July 18 to make a firm offer or walk away.

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Source: Alliance News

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