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Pfizer boss embarks on U.K. charm offensive over AstraZeneca

  • Pfizer (PFE) CEO Ian Read has said that AstraZeneca's (AZN) strong R&D capability is one of the main reasons why his company wants to buy its U.K. rival.
  • "When we looked at AZ, we liked their science," Reid said in a series of online videos. "We liked where their science is being done, which is in the U.K., and we know we have good science in the U.K. in Cambridge, Oxford, London and other universities.
  • Read was responding to increasing concern that jobs would be lost if Pfizer were to acquire AstraZeneca, especially as the U.S. company said in 2011 that it would cut 1,700 jobs when it closed a facility in Sandwich in southern England.
  • Pfizer has promised to protect R&D jobs in the U.K. but said it could adjust its pledges if circumstances "significantly" alter, prompting calls for stronger commitments, such as from British finance chief George Osborne.
  • The possible merger has also sparked concern in the U.S. and Sweden. Members of Congress from Maryland and Massachusetts, where AstraZeneca and Pfizer have facilities, are particularly worried about possible job losses.
Comments (17)
  • Willow Street Investments
    , contributor
    Comments (804) | Send Message
     
    I hope PFE doesn't go through this merger. As a PFE shareholder I would have to pay taxes upon closing of this deal. PFE has no regard for their shareholders. None.
    11 May, 08:10 AM Reply Like
  • KRT_investor
    , contributor
    Comments (234) | Send Message
     
    Nor for their employees (not counting senior management of course) it would seem. PFE has a terrible reputation in the industry of just pulling up operations and dumping them in the cheapest country around.
    11 May, 08:25 AM Reply Like
  • tikigod18
    , contributor
    Comments (888) | Send Message
     
    "PFE has no regard for their shareholders. None. "

     

    I disagree. When the Roth IRA first came into being, a lot of people had to pay taxes to convert, but the long term benefit was worth it. IF you are a long term shareholder, then yes, there is a short term hit, but a long term gain, unless you just don't like what AZN has to offer.

     

    Hopefully, if this happens, it might wake up Congress enough to actually make a change to the corporate tax rates to allow money to be repatriated at a lower tax rate, allowing more dividends, buybacks, etc. That will be good for not only shareholders but also the country.

     

    Sad for people, any people, to lose jobs, but don't point the finger at the corporation, point the finger at your Congressman who has sat on his/her hands investigating Benghazi 8 times, and uselessly voting to repeal the ACA on a constant basis, rather than trying to actually develop constructive laws to grow the country.
    11 May, 10:04 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (804) | Send Message
     
    Yes, I point the finger at PFE. They have made 3 huge acquisitions and want a fourth. They are unable to innovate on their own. I read recently BMY made 20 billion dollars in acquisitions in the last 10 or so years and were able to bring 3 drugs to market. PFE made 200 BILLION in acquisitions and were able to bring only 3 drugs to market for the same period. PFE also issued several billion dollars in shares in the process. I blame management of PFE and no one else. NO ONE.
    11 May, 10:42 AM Reply Like
  • Dividend Growth Jedi
    , contributor
    Comments (206) | Send Message
     
    No disrespect intended however why do you own shares in a company you dont approve of?
    11 May, 11:58 AM Reply Like
  • Tim'S
    , contributor
    Comments (65) | Send Message
     
    Tikigod18,

     

    Your right on with that observation. It would be a huge boon for the economy and market if the House were to flip come November.

     

    Tim
    11 May, 12:31 PM Reply Like
  • Willow Street Investments
    , contributor
    Comments (804) | Send Message
     
    No disrespect, but I have owned them over 20 years and management has gotten worse over time. No disrespect, I have owned PFE through mergers and spinoffs and don't want to go through the calculations. No disrespect, but I get almost $4000 a year in dividends. No disrespect, but I never expected a major American company to redomicile in another country just to save taxes.

     

    Your argument sounds like an "America, love it or leave it" argument.

     

    Companies I would never buy from the beginning? Cigarette companies, oil companies, insurance companies, military manufacturers, etc.

     

    Its too late for me to sell PFE. I want the dividends. It is completely unnecessary for them to redomicile in the U.K.
    11 May, 05:25 PM Reply Like
  • Dividend Growth Jedi
    , contributor
    Comments (206) | Send Message
     
    haha it was merely a question of curiousity..my assumption when I asked was what you said that you had owned shares for a long time, for dividend reasons and it wouldn't be worth selling, but I just wanted to know.

     

    I made no argument or criticisms so im not sure about the other comments.
    11 May, 09:02 PM Reply Like
  • Big Bad Bulls
    , contributor
    Comments (90) | Send Message
     
    Or you could point your finger at the congressman and and administration who have sat on their hands and done nothing to look into the IRS scandal, the Benghazi scandal, the EPA scandal, the Obamacare mess and so on. Literally, the list of scandals is endless. Or you could wonder why the congressmen do nothing to create jobs or change the tax laws in a fair manner or invest fairly in building our infrastructure instead of worrying about climate change. Just a thought, in case you were considering thoughts...
    12 May, 08:50 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (804) | Send Message
     
    ALert: Fox New watcher.
    12 May, 09:00 AM Reply Like
  • KRT_investor
    , contributor
    Comments (234) | Send Message
     
    Wow! that was quite a rant. I think I now understand why that mindset is headed for extinction.
    13 May, 10:01 AM Reply Like
  • I'm Howard
    , contributor
    Comments (84) | Send Message
     
    I was employed by Pfizer in Senior Management and they have always treated employees fairly and compensated at or above Industry standards.
    When companies merge,synergies must be exploited, reduction in duplicate endeavors makes common sense.
    Doctors have only so much time, so you consolidate and reduce numbers in sails.
    R&D prosper in shared facilities, so two labs become one bigger one.
    Bio Tech is the future for this industry,Generics will play a larger role, R&D are key as it is tougher to find new discoveries.
    This industry will continue to consolidate,spin offs from this consolidation will occur.
    The major failure of Pfizer and most large corporations is that many manage their career and not their job and that some times people get a position because their immediate manager is assured they will not threaten his position.
    I continue to hold and will always hold, the dividend is secure.
    11 May, 12:46 PM Reply Like
  • The Bluesterman
    , contributor
    Comments (197) | Send Message
     
    "many manage their career and not their job"
    Amen to that, Howard. The CYA, me-first mentality is corporate cancer.
    11 May, 12:56 PM Reply Like
  • Long Term Value
    , contributor
    Comments (153) | Send Message
     
    PFE shareholders will lose a lot of money if this deal goes through. See May 9 Wall Street Journal article by Laura Saunders for details. The change in domicle will trigger a taxable event for PFE shareholders. PFE knows it and mentions this in their April 28 press release.

     

    This deal shows how little the CEO cares about his shareholders.
    11 May, 10:37 PM Reply Like
  • Long Term Value
    , contributor
    Comments (153) | Send Message
     
    PFE just returned my phone call. A lady from Pfizer corporate governance is creating a log of shareholder complaints to give to the board. Her name is Cecilia Rueda-Stephens, 908-901-1547. You can call her and add your voice in opposition.
    12 May, 12:33 PM Reply Like
  • Willow Street Investments
    , contributor
    Comments (804) | Send Message
     
    I called and left a message with this person voicing my strong feelings against this merger.
    12 May, 12:46 PM Reply Like
  • Willow Street Investments
    , contributor
    Comments (804) | Send Message
     
    They called me back and and told her my thoughts against the merger.
    13 May, 10:21 AM Reply Like
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