AbbVie and Shire to merge in $32 billion deal.

The Boards of AbbVie and Shire are pleased to announce that they have reached agreement on the terms of a recommended combination of Shire with AbbVie. AbbVie will pay about £52.48 per share, comprising £24.44 pounds in cash and 0.8960 new AbbVie shares. This represents a premium of 53% to the price of Shire stock on May 2, the last day prior to AbbVie's initial proposal and Shire shareholders will have a 25% stake in the new firm. The deal is valued at £32 billion. A separate company, New AbbVie, has been formed in Jersey, which will result in significant tax savings, reducing the rate to about 13% by 2016.