Shire props up European shares on bid hopes

viernes 20 de junio de 2014 03:56 GYT

* FTSEurofirst 300 up 0.1 pct, FTSE 100 up 0.3 pct

* Shire up 13 percent as AbbVie confirms rejected bid

* Telenor falls as Norway plans stake reduction

By Francesco Canepa

LONDON, June 20 (Reuters) - A rally in drugmaker Shire helped European bourses hold onto gains on Friday on news the British firm had been the target of a takeover bid from U.S. rival AbbVie.

Shares in Shire rose 13 percent to 42.31 pounds after AbbVie confirmed it had made a bid approach, which was rejected by Shire's board.

AbbVie said its final indicative offer was worth 46.26 pounds, adding talks are no longer ongoing.

Shire has been seen as a prime takeover target for U.S. drugmakers thanks to a mid-sized market value and its tax base in Ireland, where effective corporate tax rates are among the lowest in the world.

"I'd probably take some profit there and then go back in," said Mike Reuter, a broker at Tradition. "The stock won't crash. It's an M&A candidate and I think there will be an offer, eventually."   Continuación...