In a July 14 statement, Shire reported that the company had requested and received a revised proposal from AbbVie on July 13 for cash and AbbVie shares, with an indicative value of 53.20 British pounds per Shire share, based on share prices of July 11.
Under the revised proposal, Shire shareholders would own approximately 25% of the combined new AbbVie. The new proposal is valued at $53 billion (31 billion pounds) by Reuters.
“The Board of Shire has indicated to AbbVie that it would be willing to recommend an offer at the level of the Revised Proposal to Shire shareholders subject to satisfactory resolution of the other terms of the offer. Accordingly, the Board is in detailed discussions with AbbVie in relation to these terms,” the statement reports.
Shire reports that the revised proposal is subject to the pre-conditions set by AbbVie on July 8, 2014 including due diligence and the recommendation of the Board of Shire and warned that “There can be no certainty that any firm offer will be made.”