AbbVie to acquire Shire
AbbVie Inc. (NYSE:ABBV) will acquire Shire plc (LSE:SHP; NASDAQ:SHPG) for about L31.4 billion ($53.8 billion) in cash and stock. The offer comprises L24.44 in cash and 0.8960 AbbVie shares per Shire share. Shire shareholders will own about 25% of the combined new AbbVie, which will be domiciled in the U.K. and listed on the NYSE. AbbVie projected a 2016 tax rate of 13% for the combined company, compared to AbbVie's current 22% rate. The companies disclosed the latest offer on Monday, at which point Shire said its board would be "willing to recommend" the bid (see BioCentury Extra, July 14).
Earlier this week, U.S. Treasury Secretary Jacob Lew urged members of Congress to pass legislation to block corporate tax inversions and to make the legislation retroactive to May 2014 (see BioCentury Extra, July 16). ...