Early Friday morning, Shire plc SHPG confirmed that it had previously received an unsolicited proposal from AbbVie ABBV for a potential, and highly conditional, cash and share bid, and announced that the proposal has been rejected.
The Street is responding extremely favorable to the news as shares of Shire and AbbVie have rocketed of as much as 14 and four percent, respectively, in the pre-market session.
After meeting with AbbVie to discuss the proposal, Shire's board unanimously decided to reject the offer stating that it "fundamentally undervalued" the company. The offer was comprised of £20.44 in cash and 0.7988 AbbVie shares for every 1 Shire share and represented a 23 percent premium to Shire's share price on June 19.
Shire Chairman Susan Kilsby commented, "Shire has a long track record of delivering for shareholders and addressing unmet patient needs. Our high-performing management team and focused strategy are producing even stronger results, reflected in our recent top-line growth and increased profitability.
"With an expanded portfolio focused on high-growth opportunities, an efficient cost base and an enhanced innovative pipeline, we have put in place a platform for long-term value creation. We believe that Shire has a strong independent future."
Shire will be hosting an investor call on Monday, June 23. Details to follow.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
