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London - US drugmaker AbbVie has been forced to retract comments by its chief executive about shareholder support for its $51bn bid for Shire after being caught out by British takeover rules.
Chief executive Richard Gonzalez told Reuters in an interview on Tuesday he believed major Shire investors were "generally supportive of this transaction" - a comment he repeated in conversations with other media.
Under Takeover Panel rules, designed to ensure fair treatment for all investors, a company attempting to acquire a rival is not allowed to claim support for its bid unless it has this in writing from shareholders.
"AbbVie confirms that it has not received any written commitments of support and accordingly retracts the statements," it said on Wednesday.
Waiting for Shire
AbbVie raised its offer for Shire to £30.1bn on Tuesday, hoping to win over its reluctant target after three earlier offers were rejected.
Shire has yet to respond to the latest cash-and-stock offer, which was worth £51.15 a share at July 7 prices more than AbbVie's previous proposal. It said on Tuesday that its board was meeting to consider it.
However, with AbbVie's shares falling 3% on Tuesday, the actual value of the latest offer has fallen to £50.19 per share, which Panmure Gordon analyst Savvas Neophytou said was inadequate and was likely to be rejected by the Shire board.
Other analysts said Shire's board might try to seek alternative offers in order to push the price higher, although AbbVie's Gonzalez told Reuters he was not aware of any counterbidders interested in the company.
AbbVie may have some room to offer more but is likely to be constrained by a desire to maintain its investment grade credit rating.
The US company is eager to buy Shire both to reduce its tax bill by moving its tax base to Britain - a tactic known as inversion - and to diversify its drug portfolio by adding Shire's specialised drugs for hyperactivity and rare diseases.
Shire shares were down 1.3% at £44.70 by 13:20.
