Shire, a drug producer in London, plans to accept abbvie's offer

Source: Tencent finance, a London listed drug manufacturer on July 15, 2014, has given in to its 31 billion pound ($53 billion) takeover offer after raising its offer to abbvie, a US peer company, on Monday, which means that the long-term negotiations between the two sides will come to a successful end Shire said it was prepared to recommend to its shareholders that it accept the offer Recently, U.S companies have been looking for overseas M & A transactions to reduce their tax rates, and the abbvie offer for shire is the latest such transaction Less than seven weeks ago, Pfizer's $118 billion bid for AstraZeneca ended in failure, in part because of tax concerns Abbvie, based in Chicago, wants to reduce tax spending by acquiring shire and diversify its product portfolio Abbvie's four previous offers have been rejected by Dublin based shire, which on Sunday raised its offer price to 53.20 pounds ($89.7) a share On Saturday, a source familiar with the situation said shire had asked abbvie to raise its offer price to 53 pounds ($89.4) a share before the company would recommend that its shareholders accept the offer According to the latest offer from ABB vie, each share of the company will be converted into cash of £ 24.44 (US $41.2) and 0.8960 additional shares of ABB vie, which will be about 25% of the shares of shire's shareholders in the combined company, shire said Founded in 1986, shire's share price hit a record high of 50.45 pounds ($85.09) in early trading in London today "The price of this offer looks fair and represents good value for shareholders of both companies," said Mick Cooper, an analyst at Edison investment research Abbvie is eager to acquire shire, on the one hand, in order to transfer its tax base to the UK, so as to reduce the taxes that the company needs to pay to the US authorities; on the other hand, it hopes to use the transaction to make its drug product portfolio more diversified Currently, nearly 60% of abbvie's revenue comes from Humira, the world's best-selling drug for rheumatoid arthritis, but its US patent protection will expire at the end of 2016 According to analysts at Barclays, if the deal is successfully completed, it will save abbvie $1.3 billion in tax revenue by 2020, due to the low corporate tax rate in the UK.