AbbVie forced to retract CEO comments in Shire bid fight

Jul 10 2014, 20:47 IST
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SummaryUS drugmaker AbbVie has been forced to retract comments by its chief executive about shareholder support for its bid for Shire after being caught out by British takeover rules.

US drugmaker AbbVie has been forced to retract comments by its chief executive about shareholder support for its bid for Shire after being caught out by British takeover rules.

CEO Richard Gonzalez told Reuters in an interview on Tuesday that he believed major Shire investors were “generally supportive of this transaction” — a comment he repeated in conversations with other media.

Under UK Takeover Panel rules a company attempting to acquire a rival is not allowed to claim support for its bid unless it has this in writing from shareholders. “AbbVie confirms that it has not received any written commitments of support and accordingly retracts the statements,” it said on Wednesday.

The error is a further example of the strict nature of British takeover rules, which also caused problems for Pfizer during its unsuccessful bid for AstraZeneca earlier this year.

AbbVie raised its offer to £30.1 billion ($51.3 billion) on Tuesday, hoping to win over Shire after three earlier offers were rejected. Shire has yet to respond to the latest cash-and-stock offer, which was worth £51.15 a share at July 7 prices, or 11% more than AbbVie’s previous proposal, and its board was meeting to consider it.

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