BRIEF-Shire says AbbVie Inc proposal undervalues company

June 20 Fri Jun 20, 2014 3:54am EDT

June 20 (Reuters) -

* Shire plc reg-shire plc: shire confirms rejection of abbvie proposal

* Decided unanimously to reject proposal on basis that it fundamentally undervalued company and its prospects

* Shareholders are strongly advised to take no action in relation to proposal

* Proposal comprised £20.44 in cash and 0.7988 abbvie shares per shire share.

* Proposal involved a new us listed holding company with a uk tax domicile.

* A premium of 30% to shire's 30 day volume weighted average share price of £ 35.43.

* A premium of 23% to shire's share price of £37.38 on 19 june 2014 ( business day prior to this announcement); and

* Board also had concerns regarding execution risks associated with proposed inversion structure, as abbvie would redomicile in uk for tax purposes

* Proposal would deny shire shareholders full benefits of shire's growth strategy

* Shire will more than double its 2013 annual product sales to us$10 billion by 2020 Source text for Eikon: Further company coverage: