Bid target Shire gets $416m tax windfall boost

 
Michael Bow
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UK drugmaker Shire, subject of a £27bn takeover bid by Canadian firm AbbVie, yesterday said it had received C$248m (£138m) back in rebates from Canadian tax authorities – with a further C$168m still to come.

The payback bolstered Shire’s position yesterday, as it geared up for battle with AbbVie to woo shareholders over the takeover bid.

Shares in the company, listed on the FTSE 100, spiked in early trading but fell back to close the day flat.

The group, which is based in Dublin, said: “Shire intends to use the cash receipts to repay debt, providing Shire with increased capacity to invest in focussed business development activities.” Shares closed at 4,570p.