(MENAFN- AFP) US drugmaker AbbVie on Tuesday raised its offer for Irish rival Shire Pharmaceuticals by about 11 percent, arguing that a merger would benefit shareholders of both companies.
AbbVie's newest cash-and-stock proposal for Shire was worth 51.15 pounds per share, valuing the company at 30.1 billion pounds ($51.6 billion).
The US company's previous offer in late June was at 46.26 pounds per share, or 27.3 billion pounds ($46 billion).
The latest proposal represents a 10 percent premium to Dublin-based Shire's closing price Monday on the London stock market.
Shire shares jumped to 47.50 pounds after the announcement before falling back to 46.33 pounds in Tuesday trade.
The company, a specialist in drugs for the treatment of attention-deficit disorder and rare diseases, said that its board will meet to consider the new offer.
"Shareholders are strongly advised to take no action in relation to the AbbVie proposal. There can be no certainty that any firm offer will be made nor as to the terms on which any firm offer might be made," Shire said in a statement.
AbbVie's three previous informal offers, the first made in May, have all been rejected by Shire as fundamentally undervaluing the firm. Shire also has highlighted concerns over AbbVie's proposal to make Britain its home base for tax purposes.
Under British law, AbbVie has until July 18 to make a formal offer.
AbbVie said it had spoken to a large number of Shire's shareholders before announcing the sweetened proposal.
"AbbVie believes that the revised proposal reflects a substantial sharing of potential synergies between the shareholders of each company," the Chicago-based company said.
AbbVie shares were down 1.2 percent at $56.19 in early trade on the New York Stock Exchange.
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