PHILADELPHIA and DUBLIN, November 5 /PRNewswire-FirstCall/ -- Shire plc (LSE: SHP, NASDAQ: SHPGY), the global specialty biopharmaceutical company, announces that it has successfully settled all pending litigation in connection with former dissenting shareholders of Transkaryotic Therapies, Inc. (TKT). Shire will pay the same price of $37 per share originally offered to all TKT shareholders at the time of the July 2005 merger, plus interest.
Background to the litigation
As previously disclosed, before completion of the merger, certain dissenting shareholders holding approximately 11.3 million of TKT shares submitted written demands for appraisal of the fair value of these shares and, as a result, elected not to accept the $37 per share merger consideration offered by Shire. A second lawsuit was brought in March 2007 alleging, among other claims, breaches of fiduciary duty by certain members of TKT's Board. The majority of that second lawsuit had been dismissed by the Court at summary judgment in June 2008. A trial date had been set for both cases on December 10th, 2008.
Details of the Settlement
Shire will pay $37 per share - the same amount per share paid to non-dissenting shareholders in July 2005 at the time of the merger between Shire and TKT - plus interest. The Delaware Chancery Court has approved dismissal of the case and Shire expects to make payment to the dissenting shareholders on November 7, 2008.
The settlement represents a total payment of $567.5 million,
representing consideration at $37 per share of $419.9 million and an
interest cost of $147.6m. Although not controlling for this case, under
current law, the court presumptively awards interest in appraisal rights
cases at a statutorily determined interest rate that is 5 percentage points
above the Federal Reserve discount rate (as it varies over the duration of
the case). The interest cost for today's settlement uses an interest rate
that approximates this sta
|SOURCE Shire Plc|
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