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AKIPRESS.COM - The Irish pharmaceutical company Shire said on Friday that it had rejected a takeover approach from the American drug maker AbbVie that valued the company at 27.2 billion pounds, or about $46.3 billion, the NY Times said.
AbbVie, which is based in Chicago, revealed on Friday that it had first approached Shire in early May about a possible tie-up, but was rejected three times by Shire’s board of directors – the latest at the end of May. AbbVie was spun off from Abbott Laboratories last year.
Shire called AbbVie’s proposal “unsolicited and highly conditional” and said that it “fundamentally undervalued the company and its prospects.”
“We believe that Shire has a strong independent future,” Susan Kilsby, the Shire chairwoman, said in a statement.
Under British takeover rules, AbbVie has until July 18 to make a firm offer for Shire or walk away for at least six months before coming back with a further unsolicited offer. After three months, it is possible for the sides to reengage if Shire’s board agrees to it.
“There can be no certainty that any firm offer will be made,” AbbVie said in a statement. “Discussions are no longer ongoing.”
The latest cash and share offer was equal to £46.26 a share, AbbVie said.
Shire’s shares rose 13 percent to £42.26 in trading in London on Friday morning.