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.

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