AbbVie Could Pay as Much as GBP65/Shr for Shire: Jefferies
2014-06-25 15:12:57.198 GMT
By Allison Connolly
June 25 (Bloomberg) -- AbbVie can raise offer for Shire up
to GBP65/shr and maintain double-digit EPS accretion, assuming
4% debt rate, Jefferies says in note.
* Says for every GBP5/shr increase to its bid, AbbVie loses
~8-9 cents of accretion in 2020 vs the implied >$1.00 of
accretion at current stock price
* Expects AbbVie to raise offer until deal gets done
* Says promise of share buybacks is important for U.K.
shareholders who may not wish/won’t be able to hold AbbVie
stock
* Maintains buy rating, PT GBP66
* NOTE: Earlier, AbbVie CEO Won’t Rule Out Going Hostile for
Shire
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Allison Connolly in London at +44-20-3525-7043 or
aconnolly4@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-06-25 15:12:57.198 GMT
By Allison Connolly
June 25 (Bloomberg) -- AbbVie can raise offer for Shire up
to GBP65/shr and maintain double-digit EPS accretion, assuming
4% debt rate, Jefferies says in note.
* Says for every GBP5/shr increase to its bid, AbbVie loses
~8-9 cents of accretion in 2020 vs the implied >$1.00 of
accretion at current stock price
* Expects AbbVie to raise offer until deal gets done
* Says promise of share buybacks is important for U.K.
shareholders who may not wish/won’t be able to hold AbbVie
stock
* Maintains buy rating, PT GBP66
* NOTE: Earlier, AbbVie CEO Won’t Rule Out Going Hostile for
Shire
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Allison Connolly in London at +44-20-3525-7043 or
aconnolly4@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net