AbbVie/Shire Deal Has 75% Chance of Going Through: Bernstein
2014-10-15 11:52:27.677 GMT
By Cristin Flanagan
Oct. 15 (Bloomberg) -- AbbVie/Shire deal still has “high
probability” of going through, writes Bernstein analyst Aaron
Gal, after yday’s post-mkt announcement that ABBV was
reconsidering recommendation on deal.
* Recent regulations may require more borrowing, regulations
on “decontrolling” ABBV units now more unwieldy, “Double
Irish” change may also have contributing effect
* ABBV doesn’t have a lot of other attractive strategic
options, may be hard to renegotiate deal under U.K. law
* AbbVie may recommend lower Shire offer, or add a CVR on
inversion, Bloomberg Intelligence’s Sam Fazeli writes;
today’s Shire drop may make it easier for ABBV to return
with lower offer
* NOTE: Earlier, Shire Down Most Since 2002; Astra, S&N Fall
on Inversion Doubt
* Shire Says AbbVie Should Proceed With Merger; Breakup
Fee $1.64b
* AbbVie May See $1/Shr Decline If Shire Deal Ended: BMO
* AbbVie Attractive as Standalone for M&A, Buybacks:
Jefferies
* AbbVie Attractive as Standalone for M&A, Buybacks:
Jefferies</li></ul>
* ABBV board to meet Oct. 20 to reconsider recommendation
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To contact the reporter on this story:
Cristin Flanagan in New York at +1-212-617-8919 or
cflanagan1@bloomberg.net
To contact the editors responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
Cristin Flanagan
2014-10-15 11:52:27.677 GMT
By Cristin Flanagan
Oct. 15 (Bloomberg) -- AbbVie/Shire deal still has “high
probability” of going through, writes Bernstein analyst Aaron
Gal, after yday’s post-mkt announcement that ABBV was
reconsidering recommendation on deal.
* Recent regulations may require more borrowing, regulations
on “decontrolling” ABBV units now more unwieldy, “Double
Irish” change may also have contributing effect
* ABBV doesn’t have a lot of other attractive strategic
options, may be hard to renegotiate deal under U.K. law
* AbbVie may recommend lower Shire offer, or add a CVR on
inversion, Bloomberg Intelligence’s Sam Fazeli writes;
today’s Shire drop may make it easier for ABBV to return
with lower offer
* NOTE: Earlier, Shire Down Most Since 2002; Astra, S&N Fall
on Inversion Doubt
* Shire Says AbbVie Should Proceed With Merger; Breakup
Fee $1.64b
* AbbVie May See $1/Shr Decline If Shire Deal Ended: BMO
* AbbVie Attractive as Standalone for M&A, Buybacks:
Jefferies
* AbbVie Attractive as Standalone for M&A, Buybacks:
Jefferies</li></ul>
* ABBV board to meet Oct. 20 to reconsider recommendation
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Cristin Flanagan in New York at +1-212-617-8919 or
cflanagan1@bloomberg.net
To contact the editors responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
Cristin Flanagan