AbbVie Inc. (ABBV) Closing on a $53 Billion Takeover of Shire PLC (ADR) (SHPG)

Questions are being asked as to whether Shire PLC (ADR) (NASDAQ:SHPG) shareholders will finally agree to the latest offer of £53.20 by AbbVie Inc. (NYSE:ABBV) as the stock continues to remain flat in the market. Delmore Asset Management Founder, Howard Goldring, has told CNBC that Shire shareholders might discount the offer considering it is not an all cash transaction, while also stating that the share price is almost close, but not yet there for approval.

Shire PLC (ADR)

Goldring has also said that most of the shareholders at Shire PLC (ADR) (NASDAQ:SHPG) must be happy at the moment considering the company’s value a few months back was about £30-£35.

“The price is getting close but not absolutely up to that level. However, most of the shareholders in Shire must be quite happy this morning, 6-7 weeks ago the price was around 35 pounds. This offer is an extremely good offer for them,” said Mr. Goldring.

Shire PLC (ADR) (NASDAQ:SHPG) remains a unique play for AbbVie Inc. (NYSE:ABBV) considering it has a pipeline of drugs that are well diversified. Shire according to Mr. Howard is quite clever at finding other companies with interesting research programs and interesting compounds in quite protected niche markets.

If successful, it will be a good deal for AbbVie Inc. (NYSE:ABBV) as it will broaden its portfolio while also offering tax reduction prospects in terms of operating as an Inversion in the U.K..

“They have got a very good pipeline; it is quite well diversified, and they are very clever at finding other companies with interesting research programs and interesting compounds,” said Mr. Goldring.

It is still not clear whether investors will sell theirs stakes in Shire considering the stock has only surged in the market after talks of a possible acquisition erupted.  The risks that come acquisitions as well as the effects of an inversion could be quite unbearable for some shareholders who might take up the opportunity and sell their interests in Shire PLC (ADR) (NASDAQ:SHPG).

There is also a risk of Shire PLC (ADR) (NASDAQ:SHPG)’s stock retracting to a flat after completion of the acquisition by AbbVie Inc. (NYSE:ABBV). Taking into consideration all this concerns Mr. Howard admitted if it were his investments he would consider ‘lightning’ the load.


Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!