Shire, AbbVie Move Closer on Nearly $54-Billion Merger Proposal

Shire plc reports that, following discussions with AbbVie Inc., Shire requested and received a further revised proposal from AbbVie on July 13, 2014.

The revised proposal comprises £24.44 ($41.85) in cash and 0.8960 shares of new AbbVie per Shire share. Based on the AbbVie share price ($54.96 at an exchange rate of US$1.00:£0.5840) on July 11, 2014), AbbVie's revised proposal has an indicative value of £53.20($91.10)  per Shire share or approximately $53.7 billion. Under the revised proposal, Shire shareholders would own approximately 25% of the combined new AbbVie.

The board of Shire has indicated to AbbVie that it would be willing to recommend an offer at the level of the revised proposal to Shire shareholders subject to satisfactory resolution of the other terms of the offer. Accordingly, the Shire board is in detailed discussions with AbbVie in relation to these terms, according to Shire.

The revised proposal remains subject to the pre-conditions set by AbbVie on July 8, 2014, including due diligence and the recommendation of the board of Shire.

Source: Shire

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