News Column

AbbVie, Shire Likely To Announce $53 Bln Merger Friday: Reports

July 17, 2014

SAINT HELIER (dpa-AFX) - US-based AbbVie Inc. (ABBV) and Irish drug company Shire Plc. (SHP.L, SHPG) are likely to announce their $53 billion merger as early as Friday, reports said.

The deal will help Abb Vie shift its tax obligations to Dublin, where Shire is head-quartered. The statutory tax rate in the U.S. is currently 35 percent, while it is 12.5 percent in Ireland.

Shire is a manufacturer of drugs for rare diseases, while Abb Vie makes the

blockbuster arthritis drug Humira. AbbVie was spun off from Abbott Laboratories (ABT) in 2013.

Earlier this week, the board of Shire indicated to AbbVie its willingness to recommend a revised off of 53.20 pounds per share to its shareholders. The revised proposal comprised 24.44 pounds in cash and 0.8960 shares of new AbbVie per Shire share.

ABBV closed down 0.2 percent on Thursday at $53.52. SHP.L settled up 0.4 percent at 4,806.48 pence.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: dpa-AFX International Compact

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters