AbbVie Is Considering Ending Its $51B Shire Deal

The transcript discusses the implications of tax inversion deals, focusing on Shire's valuation and potential as a takeover target. It highlights market reactions to legislative changes in the US and the challenges in pricing risks associated with such deals. The discussion also covers the responsibilities of company boards in appraising new situations and the likelihood of future deals proceeding.

What was the primary reason for the increase in Shire's valuation during the tax inversion deal?

• New product launches

• Strategic business growth

• Tax inversion benefits

• Market demand

How did the market react to the changes in tax inversion legislation?

• Rise in merger activities

• Drop in premium expectations

• Stability in stock prices

• Increased investment in pharmaceutical companies

What is a significant challenge in making legislative changes in the US regarding tax inversion?

• High costs involved

• Opposition from pharmaceutical companies

• Complexity and untested nature

• Lack of public support

What is the likelihood, according to the speaker, of the Shire deal proceeding?

• 80-20

• 70-30

• 60-40

• 50-50

What responsibility does the board have in light of new circumstances regarding the tax inversion deal?

• To immediately cancel the deal

• To ignore the changes

• To appraise the new situation

• To seek public opinion