US-based AbbVie is bid to buy Basingstoke drugs firm

£31 billion bid to buy Hampshire firm is step closer

£31 billion bid to buy Hampshire firm is step closer

First published in News

A deal to buy Hampshire-based drugs firm Shire is a step closer after its board backed a new takeover proposal worth more than £31 billion.

Shire's support for the higher offer from US-based AbbVie is dependent on a number of conditions being met.

Founded in the UK in 1986, Shire is best known for its attention deficit disorder drugs. It is listed on the London Stock Exchange, has its tax base in Dublin and sells most of its products in North America.

AbbVie's pursuit of Shire comes just weeks after UK firm AstraZeneca fought off takeover interest worth £69 billion from US drugs giant Pfizer.

AbbVie, which has until Friday to confirm an offer for Shire, plans to move its domicile to the UK in a move that would cut its corporate tax rate.

The Illinois-based company was formed in January 2013 after it was spun off from Abbott Laboratories. It employs around 25,000 people worldwide and markets medicines in more than 170 countries.

Shire held talks with AbbVie over the weekend following the receipt of proposals in which its shareholders would hold 25% of the combined business. The proposal values Shire at £53.20 a share, equivalent to £31.35 billion.

AbbVie first approached Shire at the start of May, with the third proposal by the end of that month valuing the company at 4626p a share, or £27.2 billion.

Shire's products enable people with life-altering conditions to lead better lives.

It provides treatments in areas such as rare diseases and neuroscience and is developing products in other therapeutic areas. Basingstoke-based Shire's best selling product is hyperactivity drug Vyvanse, which achieved revenues of 1.2 billion US dollars (£703 million) last year.

The pharmaceuticals sector has seen a raft of deal-making in recent months, with US companies looking to Europe as a way to reduce their tax liabilities.

Comments (1)

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10:10am Sat 19 Jul 14

Gristy says...

Here we go again! Another foreign company snapping up a successful British business. We lost all, or at least most, of our engineering companies many of these to foreign buyers. Our utilities are owned by the French, Germans and others. Cadbury was sold down the drain by Brown and his cronies and Kraft (American) did the dirty on us by promising not to close down Summerdale factory which they did thereby throwing thousands out of work.
This take-over if it happens will be the same. Our science and high tech research will be transferred to Illinois. The UK business will be reduced to an office in order that AbbVie can claim tax residence here. There has been a raft of deal-making in recent months, with US companies looking to Europe as a way to reduce their tax liabilities.
What is all this basically about besides Tax fiddles? GREED. Greedy directors, greedy banks, greedy hedge funds and it goes on to lead to bloody great handouts all round and hundreds thrown out of work.

Ask yourselves, do the French allow foreign companies to buy their assets, no they don't. Do the Germans? Same answer. in fact if you look around the world very few countries will allow the disposal of their strategic companies those, who are world leaders in research and science. Britain is the only country to the best of my knowledge, who wantonly delights in ridding itself of all its research, expertise and knowledge to foreigners.
Well done Britain keep feeding the GREEDY ones, and consequently loose all your hard won R & D to foreign countries.
Here we go again! Another foreign company snapping up a successful British business. We lost all, or at least most, of our engineering companies many of these to foreign buyers. Our utilities are owned by the French, Germans and others. Cadbury was sold down the drain by Brown and his cronies and Kraft (American) did the dirty on us by promising not to close down Summerdale factory which they did thereby throwing thousands out of work. This take-over if it happens will be the same. Our science and high tech research will be transferred to Illinois. The UK business will be reduced to an office in order that AbbVie can claim tax residence here. There has been a raft of deal-making in recent months, with US companies looking to Europe as a way to reduce their tax liabilities. What is all this basically about besides Tax fiddles? GREED. Greedy directors, greedy banks, greedy hedge funds and it goes on to lead to bloody great handouts all round and hundreds thrown out of work. Ask yourselves, do the French allow foreign companies to buy their assets, no they don't. Do the Germans? Same answer. in fact if you look around the world very few countries will allow the disposal of their strategic companies those, who are world leaders in research and science. Britain is the only country to the best of my knowledge, who wantonly delights in ridding itself of all its research, expertise and knowledge to foreigners. Well done Britain keep feeding the GREEDY ones, and consequently loose all your hard won R & D to foreign countries. Gristy
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