UK drug firm Shire pushes US takeover

British drug company Shire is urging a buyout from US competition AbbVie following the firm's most recent bid of £53.20 per share the BBC has reported.

Shire, primarily known as a manufacturer of pharmaceuticals to treat rare diseases, is advising its shareholders to accept the offer.

If the deal is successful it could substantially reduce Abbvie’s tax bill.

The US firm started bidding for the Berkshire-based manufacturer in May, but as of last Tuesday raised it’s offer to £51.15 per share.

As part of the takeover, shareholders would own roughly 25% of the new company.

In a statement Shire representatives said: “The board of Shire has indicated to AbbVie that it would be willing to recommend an offer at the level of the revised proposal to Shire shareholders, subject to satisfactory resolution of the other terms of the offer.”

On Friday, Shire’s shares increased 5.9% to close at £48.70, valuing the organisation at £28.7bn. AbbVie’s shares decreased by 0.76%, closing at £32.16.

The news comes barely two months after UK drug firm AstraZeneca’s rejection of Pfizer’s £55 a share buyout.