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...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Economics

Investors look away from energy intensive sectors such as chemicals, metals and manufacturing.

'An investor's worst nightmare': Energy rationing spells greater chaos for supply chains

Business confidence falls

clock 05 August 2022 • 5 min read
Bank of England governor Andrew Bailey

Bank of England gilt sales 'unlikely to upset markets too much'

Central bank raises rates to 1.75%

clock 04 August 2022 • 3 min read
SIF 2022: How to invest in biodiversity

SIF 2022: How to invest in biodiversity

Biodiversity panel

clock 04 August 2022 • 6 min read