Shire shares leap after £27bn takeover rejection

UK pharmaceutical group Shire saw shares jump 10% by mid-morning, after it revealed it rejected a £27bn bid approach from a US group.

The FTSE 100 company climbed to £41.46 by 11am, a record high for the group, after it announced US rival AbbVie had approached it about a takeover. The proposal comprised £20.44 in cash and 0.7988 AbbVie shares per Shire share, and also involved the creation of a US-listed holding company with a UK tax domicile. The total price of the deal was a 23% premium to Shire's closing price of £37.38 yesterday, but Shire's board said the deal "undervalued" the Uk company. It said in a statement: "Shire met with AbbVie to enable AbbVie to explain key aspects of the proposal. Following this m...