AbbVie: shares drop after Allergan acquisition
(CercleFinance.com) - Investors reacted negatively to the news of AbbVie's acquisition of Irish-based medical device maker Allergan, with over 15 billion dollars worth of the US drugmaker's market capitalisation wiped out.
Traders punished the stock in early morning trading on the New York Stock Exchange (NYSE), with AbbVie shares currently tumbling almost 15% from yesterday's close.
The pharmaceutical maker's market capitalisation has now dropped to under 100 billion dollars.
On the other hand, Allergan's shares jumped by over 22%.
Earlier on Tuesday, AbbVie said that it will acquire Allergan in a cash-and-stock transaction, based on an equity value of approximately 63 billion dollars.
The deal represents a 45% premium to Allergan's closing price yesterday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Traders punished the stock in early morning trading on the New York Stock Exchange (NYSE), with AbbVie shares currently tumbling almost 15% from yesterday's close.
The pharmaceutical maker's market capitalisation has now dropped to under 100 billion dollars.
On the other hand, Allergan's shares jumped by over 22%.
Earlier on Tuesday, AbbVie said that it will acquire Allergan in a cash-and-stock transaction, based on an equity value of approximately 63 billion dollars.
The deal represents a 45% premium to Allergan's closing price yesterday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.