The Dublin-based drugmaker Shire PLC says it has rejected an unsolicited cash and share offer from AbbVie Inc., arguing that it fundamentally undervalued the company and its prospects.
The company said in a statement Friday that U.S.-based AbbVie's proposal was 20.44 pounds ($34.78) and 0.7988 shares per Shire share — a 23 percent premium to Shire's share price of 37.38 pounds on Thursday.
Shire says its board also had concerns about company structure "as AbbVie would redomicile in the UK for tax purposes."
The offer comes at a time of intense speculation in the industry, as drugmakers look to grow or eliminate noncore assets while focusing on strengths.
Last month, Pfizer pulled the plug on a takeover offer for Anglo-Swedish AstraZeneca, amid intense political pressure to keep jobs in Britain.