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Tuesday, October 14, 2014

AbbVie says to reconsider recommendation for Shire acquisition, (NYSE: ABBV)

AbbVie Inc said it intends to reconsider its recommendation to its shareholders to vote in favor of the 32 billion pound ($54.7 billion) merger with Shire Plc due to the changing U.S. tax regulations. Chicago-based AbbVie, which makes top-selling arthritis drug Humira, is eager to purchase Shire to reduce its U.S. tax bill by moving its tax base to Britain and to diversifying its drug portfolio.However, the U.S. Treasury Department unveiled harsher-than-expected changes late last month to its existing rule book for on corporate "inversions," which have become a cause of concern in Washington about the threat posed to the U.S. corporate income tax base.AbbVie also intends to reduce its reliance on Humira, the world's top selling medicine which loses U.S. patent protection in 2016.AbbVie's said its board plans to meet on Oct. 20 to consider whether to withdraw or modify its recommendation on the deal with Shire.

AbbVie Inc. (AbbVie) is a research-based pharmaceuticals company. Shares of ABBV traded higher by 0.95% or $0.51/share to $54.13. In the past year, the shares have traded as low as $45.50 and as high as $60.02. On average, 12262900 shares of ABBV exchange hands on a given day and today's volume is recorded at 14293617.