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Shire 'willing to recommend' upped AbbVie bid

July 14, 2014 11:28 PM UTC

Shire plc (LSE:SHP; NASDAQ:SHPG) said its board would be "willing to recommend" an increased bid from AbbVie Inc. (NYSE:ABBV) to acquire the company. The new bid values Shire at L31.8 billion ($54.5 billion) in cash and stock, up from AbbVie's previous offer of L30.6 billion ($52.5 billion). The latest offer comprises L24.44 in cash and 0.8960 AbbVie shares per Shire share, up from L22.44 in cash and 0.8568 AbbVie shares previously. Shire said its board is in discussions with AbbVie to resolve undisclosed terms of the new offer. Under the revised proposal, Shire shareholders would own about 25% of the combined new AbbVie (see BioCentury Extra, July 8).

Under U.K. takeover rules, AbbVie's proposal will expire on Friday. Citi; Deutsche Bank; Evercore; Goldman Sachs; and Morgan Stanley are advising Shire. JPMorgan is advising AbbVie. ...