WSJ : AbbVie Approach 'Stopped Shire In Its Tracks'

AbbVie Approach 'Stopped Shire In Its Tracks'
Chief Executive Flemming Ornskov Says Drugs Company Was Pursuing Large M&A Deals

LONDON— Shire SHPG +1.36% PLC was pursuing a number of large deals before an approach from AbbVie Inc. ABBV +2.75% "stopped us in our tracks," Chief Executive Flemming Ornskov told The Wall Street Journal Friday.

Dublin-based Shire, which specializes in drugs to treat attention-deficit disorder and rare diseases, rejected a $46 billion takeover offer from the U.S. drug company last week, saying it undervalued the company.

When AbbVie first approached Shire in early May, "there were a number of large opportunities that we were considering, pursuing, preparing for or engaging in," Mr. Ornskov said.

He added that U.K. takeover rules now prevent any deal or deals worth more than 10% of Shire's market capitalization—around $4.5 billion—at least until July 18, which is AbbVie's deadline under the rules for making a firm bid or walking away.

Mr. Ornskov said Shire hasn't been seeking any alternative acquirers.