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Shire CFO leaves for Severn Trent after AbbVie buyout falls through | Shire CFO leaves for Severn Trent after AbbVie buyout falls through |
(about 3 hours later) | |
FTSE 100 pharmaceuticals giant Shire has had its finance director poached by water firm Severn Trent, days after the collapse of its $55 billion (£32 billion takeover) by US rival AbbVie. | FTSE 100 pharmaceuticals giant Shire has had its finance director poached by water firm Severn Trent, days after the collapse of its $55 billion (£32 billion takeover) by US rival AbbVie. |
Shares in Dublin-based Shire plunged by a quarter last week after AbbVie walked away from its planned buy-out because of the US Treasury’s new rules banning US firms taking over foreign businesses to move their tax domiciles overseas and cut their bill. | Shares in Dublin-based Shire plunged by a quarter last week after AbbVie walked away from its planned buy-out because of the US Treasury’s new rules banning US firms taking over foreign businesses to move their tax domiciles overseas and cut their bill. |
Today they slipped again — down 41p to 3739p — as the ADHD drug specialist admitted that James Bowling, Shire’s interim finance director, is quitting to take over that role permanently at Severn Trent. | Today they slipped again — down 41p to 3739p — as the ADHD drug specialist admitted that James Bowling, Shire’s interim finance director, is quitting to take over that role permanently at Severn Trent. |
Bowling took on the job at Shire in February when its finance director at the time, Graham Hetherington, stepped down. | Bowling took on the job at Shire in February when its finance director at the time, Graham Hetherington, stepped down. |
Today Shire said it will start a search for a replacement finance director “immediately”, with Danish chief executive Flemming Ornskov adding: “James has helped build and lead a high-quality finance team at Shire.” | Today Shire said it will start a search for a replacement finance director “immediately”, with Danish chief executive Flemming Ornskov adding: “James has helped build and lead a high-quality finance team at Shire.” |
The departure comes at a difficult time for Shire as the drugmaker is known to be considering various acquisition options in the US after the collapse of the AbbVie deal. | The departure comes at a difficult time for Shire as the drugmaker is known to be considering various acquisition options in the US after the collapse of the AbbVie deal. |
It will have an extra $1.6 billion in its war chest, thanks to break fees payable by AbbVie, and Shire is thought to have reopened talks with targets including rare-disease specialist NPS and Cubist, a US firm behind a medicine that tackles the hospital superbug MRSA. | It will have an extra $1.6 billion in its war chest, thanks to break fees payable by AbbVie, and Shire is thought to have reopened talks with targets including rare-disease specialist NPS and Cubist, a US firm behind a medicine that tackles the hospital superbug MRSA. |
As Jefferies analyst Peter Welford wrote: “Including the potential break fee from AbbVie, Shire could be even more favourably positioned to execute its own acquisition strategy.” | As Jefferies analyst Peter Welford wrote: “Including the potential break fee from AbbVie, Shire could be even more favourably positioned to execute its own acquisition strategy.” |
Bowling will not leave until the end of the first quarter of 2015. That’s also when Severn Trent will see Bowling — who has been Shire’s group financial controller since 2008 — take up his new position at the utility. | Bowling will not leave until the end of the first quarter of 2015. That’s also when Severn Trent will see Bowling — who has been Shire’s group financial controller since 2008 — take up his new position at the utility. |
The appointment is the first major hire for Liv Garfield, pictured, the former BT Broadband boss who joined Severn Trent earlier this year. | |
Garfield said Bowling will replace Mike McKeon, who is retiring after almost a decade years running the utility’s finances. She is also cutting the board from 11 directors to eight. | Garfield said Bowling will replace Mike McKeon, who is retiring after almost a decade years running the utility’s finances. She is also cutting the board from 11 directors to eight. |
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