AbbVie proposed $51.34bn to combine with Shire PharmaceuticalsCraig Dalton (Author) Published Date : Jul 14, 2014 03:02 ET
The two Pharmaceutical giants of UK and US is planning to combined their business after British drug company Shire Pharmaceuticals confirmed the news of talking with their rivals AbbVie the US drug firm who have proposed them to combine both companies for a $51.34bn deal.
After Shire Pharmaceuticals faced immense pressure from the shareholders recently the company confirmed the talks which were take place in New York however the meeting was just an early stage.
According to the press statement of the company, There can be no certainty that any firm offer will be made nor as to the terms on which any firm offer might be made.
The company wanted their share holders not to react on the issue according to the company statement as they wanted to expose the deal.
The talks started between the two companies back in May while after the recent meeting Shire shareholders wanted to make the deal with the US Company.
The US Pharmaceuticals giant offered the fourth time to Shire on July 8 as they give the value of 51.15 per share of their company which is around 30.1bn.
The news however played well for Shire as the share price of the company in the London market on Friday gained 5.9% at the rate of 48.70 which makes the company value of 28.7bn while the US giant finished their shares at the price of $54.95 which was down to 0.76% from the previous day.
The top share holders of the British company Shire has been continuously pressuring Shire to make the deal with the US Company after the increased offer recently through various ways.
But there is not much time left for the US Company as they have to offer the British company Shire by July 18 or they can t show any interest for the company till the next six months according to the British takeover rule.
AbbVie proposed $51.34bn to combine with Shire Pharmaceuticals