BioCentury
ARTICLE | Company News

AbbVie reconsidering Shire acquisition

October 16, 2014 3:27 AM UTC

Shire plc (LSE:SHP; NASDAQ:SHPG) plunged $74.08 (30%) to $170.49 on NASDAQ on Wednesday after AbbVie Inc. (NYSE:ABBV) said it will reconsider the companies' planned merger. Shire is off $22 (11%) from its June 19 close, before the companies announced discussions of a merger. On July 18, Shire accepted AbbVie's sweetened L31.4 billion ($53.8 billion) cash and stock buyout offer.

AbbVie said it will assess the effects of changes the U.S. Department of Treasury proposed last month to block tax inversion deals. AbbVie had projected that its tax rate would fall from 22% this year to 13% in 2016, once it acquired Dublin-based Shire. AbbVie spokesperson Adelle Infante declined to say what tax rate the combined company would expect to pay if the new tax rules take effect and the merger is completed. ...