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US AbbVie drops Shire's takeover deal
(MENAFN) The board of directors of AbbVie, US pharmaceutical firm, said it no longer supports a USD54 billion takeover of its Irish-based competitor Shire, AFP reported.
AbbVie attributed its decision to a new crackdown on US firms relocating abroad to save on taxes. The change made the takeover less tempting financially, the company said.
"Although the strategic rationale of combining our two companies remains strong, the agreed upon valuation is no longer supported as a result of the changes to the tax rules," AbbVie chairman and CEO said.
In July of this year, Irish-based Shire accepted the takeover bid, in a deal which was expected to cut AbbVie's effective tax rate to about 13 percent by the year 2016.
AbbVie attributed its decision to a new crackdown on US firms relocating abroad to save on taxes. The change made the takeover less tempting financially, the company said.
"Although the strategic rationale of combining our two companies remains strong, the agreed upon valuation is no longer supported as a result of the changes to the tax rules," AbbVie chairman and CEO said.
In July of this year, Irish-based Shire accepted the takeover bid, in a deal which was expected to cut AbbVie's effective tax rate to about 13 percent by the year 2016.
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