AbbVie scuppers Shire bid for rival

However, AbbVie’s confirmation that it had made a £27bn approach for London-listed Shire kicked off a 28 -day offer period meaning the US bidder must make a firm, fully-financed bid by July 18, or walk away.

“Shire is unlike other companies in that it is historically very acquisitive, it is part of its business model”, one person familiar with the company said. “So to be hamstrung in its ability to follow its day-to-day business practice is very disruptive”.

If Shire is reluctant to be sold to AbbVie it could call an emergency meeting of shareholders to approve its own acquisition plan.

However, this would hinge upon Shire’s shareholders believing that a deal by the Dublin-domiciled business would be better than a takeover of Shire.

Flemming Ornskov, chief executive of Shire has been pragmatic about his defence of the business so far and said he would not stand in the way of a deal if a higher offer came from AbbVie.

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