AbbVie & Shire Working to Reach Deal by Today

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July 18 (Bloomberg) –- Sphera Funds Management Partner Ori Hershkovitz discusses AbbVie and Shire working to forge a deal by this morning. The companies have until 5pm in London to agree to a deal otherwise AbbVie will have to walk away for 6 months. He speaks to Manus Cranny and Caroline Hyde on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Deal.

They wanted to support abilities offer of 53 pounds.

First of all, good morning.

There's a very good chance.

It makes a lot of sense.

There is a very nice premium built into the deal.

, a very nice tax benefit behind it.

I am optimistic that this deal will go through.

What does it mean?

What does it mean for the ceo?

Will he have a decisive role?

He defended being independent in the first place.

What do you think will happen in the new entity?

Yes, i think he would definitely rather see the company independent.

When we spoke last time about the astra zeneca deal that was proposed by pfizer, it was obvious that the entire team was going to go home.

He will have some synergy within the oncology division.

This is 100% tax and version deals.

There are literally no synergies between the countries, so you'll need someone to manage all of the franchises, you have no one, practically no one to manage them, so i think that they will retain a large portion of management, so i think it's back from management will still be there but will be much lesser extent that you have seen on the astra zeneca, another thing to be taking into account is astra zeneca was somewhat of a national asset, there was some pride involved.

Here, it is much less conceived as a proud national asset of great britain.

I think this will go smoother than the pfizer deal did.

Let's talk tax.

You brought it up, yesterday we had taken be saying that the tax and version deals where american companies are trying to avoid their own tax regimes, by up companies such as ireland -- companies in lower tax entries such as ireland.

They want to back eight it.

Could the stop the deal going through.

They're looking to put a deal in place.

This inversion process committed wasn't quite so appetizing.

May wasn't an accidental date, just to show what kicked them off which is the pfizer deal.

This is the brand name, the industrial deal.

This pick them off, but looking at relationships between republicans and democrats in congress and thinking that this retrospective type of tax laws has actually happened only once in history, it is very uncommon in the u.s.. i would say the chances of this suggestion becoming a reality and actually passing through congress are close to zero.

The entire drill of putting this up in the air was to scare management and i just don't see it happening.

I would not be scared, i think the chances are close to zero of passing.

At this time, a law of this magnitude in congress.

Would you hold the stock, if and when the deal gets done.

But, where does it fit in the portfolio?

Is it one for you?

I'm not holding it right now.

If they do by scheier, i will reconsider.

I think you will see double-digit accretion by the end of the decade and i think, i've been a huge fan for a long time, so definitely have to look at the combined model and see what kind of synergies they are projecting and if it will fit our standards, then yes, i think there is a good chance that we

This text has been automatically generated. It may not be 100% accurate.

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