Shire again shuns AbbVie takeover bid

TAKEOVER target Shire shrugged off attempts by US predator AbbVie to accelerate its pursuit of the company and quickly clinch a £27bn deal.

London-listed Shire – based in Ireland to cut tax bills – reiterated its view that the offer ‘fundamentally undervalued the company and its prospects’ and advised shareholders to take no action.

AbbVie had told investors and analysts that a deal was ‘strategically compelling’ and would create ‘a larger and more diversified biopharmaceutical company’ with potential for acquisitions, investment and enhanced shareholder value.

Best known for Adderall, its attention deficit hyperactivity disorder (ADHD) treatment, Shire insists it can create more value as an independent company. Chief executive Flemming Ornskov has conceded he is happy to sell at the right price if the board agrees.

But on Monday Shire set out its bid defence, with ambitious targets to double annual sales by 2020.

AbbVie is anxious to combine with Shire to reduce its own tax payments, in an arrangement known as a ‘tax inversion’, a technique which has angered US lawmakers keen to prevent major American companies shifting overseas.

AbbVie is understood to be want to take its case to Shire shareholders and hear their views on valuation. Chief executive Richard Gonzalez and AbbVie’s senior management plan to meet US investors in New York on Thursday and Friday, with meetings planned for London next week.

Gonzalez has declined to rule out a hostile bid but said his preference was to engage with Shire’s management to better understand He was ‘even more interested’ in Shire after hearing its plans.

AbbVie’s pitch comes as Shire ( up 113p at 4517p) won new ammunition for arguing its worth after a US court decision backing patent claims on its top- selling hyperactivity drug Vyvanse.