"They can either accept or reject it," says Pfizer (PFE) CEO Ian Read of his company's "final" offer for AstraZeneca (AZN) valued at about $120B. "They have until the 26th of May," under U.K. takeover rules.
The new offer increases the cash component of the deal to 45% of the total price, values AstraZeneca shares at £55 ($92.48) each, and comes after some back and forth between the companies that started on Thursday with Pfizer offering £53.50. AstraZeneca, according to Read, said £53.50 substantially undervalues the company. "If that is what you believe, I really cannot find a way to close a substantial gap," Read says he told AZN at the close of a Sunday phone call.