By Rory Gallivan
LONDON--U.K. drug company Shire PLC (SHP.LN) said Wednesday that
AbbVie Inc. (ABBV) should proceed with its offer for Shire on the
basis of terms the two companies have agreed after Abbvie said it
was reconsidering its offer for Shire.
AbbVie Inc. signaled Tuesday it was having second thoughts about
its planned acquisition of Shire PLC, saying its board would
reconsider the $54 billion deal in light of new Treasury rules that
make it less attractive.
"Shire confirms that overnight it received notice from AbbVie
under the Cooperation Agreement of the AbbVie Board's intention to
consider whether to withdraw or modify its recommendation in light
of the impact of the U.S. Treasury Notice of 22 September 2014,"
Shire said Wednesday, without giving details of the Treasury
notice.
"The Board of Shire believes that AbbVie should proceed with the
recommended offer on the agreed terms in accordance with the
Cooperation Agreement," it added.
Shire said its board will meet to consider the current
situation.
"In the event that the AbbVie Board adversely changes its
recommendation and AbbVie stockholder approval is not obtained (or
another triggering event occurs), a break fee of approximately
$1.635 billion would be payable by AbbVie to Shire," said
Shire.
Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
Subscribe to WSJ: http://online.wsj.com?mod=djnwires