AbbVie made an approach with an offer of $46.11 for each Shire share
Dublin, Ireland-based drugmaker Shire has rejected a £27bn approach from US research-based biopharmaceutical company AbbVie.
The company confirmed that it had received an indicative approach about a possible cash and share offer from Chicago-based AbbVie in early May, which has been rejected.
Shire said AbbVie's first proposal on 5 May represented an indicative offer of £38.97 for each Shire share. A follow-up proposal a week later was raised to £39.96.
By the third and latest proposal, the offer had been raised to £46.11.
The US company said that discussions are 'no longer ongoing' and 'there can be no certainty that any firm offer will be made'.
Shire 'strongly advised' shareholders to take no action and said the proposal 'fundamentally undervalued the company and its prospects as a leader in rare diseases and speciality markets'.
The company also had concerns regarding the risks associated with the proposed inversion structure, as AbbVie would redomicile in the UK for tax purposes.
Our high-performing management team and focused strategy are producing even stronger results
Shire said its new management team had 'significantly accelerated growth and increased shareholder returns over the last 12 months' and will 'more than double its 2013 annual product sales to US$10bn by 2020'.
Susan Kilsby, Chairman of Shire, said: '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.'
Under takeover rules, AbbVie has until 18 July to make a firm offer for Shire or walk away from the proposal.