AbbVie board backs out on planned $55 billion Shire take over
Wednesday, October 15, 2014
U.S. drugmaker AbbVie has held its plan to buy Shire, a Dublin-based firm, asking its shareholders voice against the planned $55 billion (34.39 billion pounds) takeover following new U.S. tax rules.
Shire still gets break-up fee of about $1.64 billion in case AbbVie''s shareholders reject the transaction.
Since the tax avoiding take over are more difficult in accordance with the U.S Treasury, the company will have to pass on a major scalp to the U.S. Treasury.
After the break-up, Shire may further go on to buy some company with its latest break-up pact earning as it has followed a record in deals concerning with acquisitions.
