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Shire proposes to acquire Movetis

August 3, 2010 11:39 PM UTC

Shire plc (LSE:SHP; NASDAQ:SHPGY) proposed to acquire Movetis N.V. (Euronext:MOVE) for EUR 19 per share, or EUR 428 million ($559.5 million) in cash. The price is a 74% premium to Movetis' Monday close of EUR 10.90 and 55% premium to the company's IPO price of EUR 12.25 in December, when the company raised EUR 85 million. Shire said the deal would broaden its gastrointestinal portfolio and expand its presence in Europe, where Movetis markets Resolor prucalopride for chronic constipation in women in whom laxatives fail to provide adequate relief. Shire markets Lialda mesalamine for ulcerative colitis.

Movetis' board unanimously supports the offer, and a group of institutional shareholders holding an aggregate of 38.9% of Movetis have agreed to the deal. Shire plans to begin its tender offer in September and expects the deal to close this year. At March 31, Movetis had EUR 100 million in cash. Deutsche Bank is advising Shire on the deal, and Evercore Partners is advising Movetis. ...