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Pfizer boosts bid for AstraZeneca

  • "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.
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Comments (10)
  • Gary Schuster
    , contributor
    Comments (155) | Send Message
     
    The main good thing about this higher bid is that it will reduce the value of Pfizer stock for current shareholders. This will decrease the amount of capital gains tax we are obligated to pay the U.S. federal government should the offer be accepted. I'm always trying to look for positive things--sometimes they are hard to find.
    18 May, 09:48 PM Reply Like
  • NC Investor
    , contributor
    Comments (349) | Send Message
     
    Gary

     

    As a long time PFE shareholder, I see reducing the price of PFE stock by this proposal so I will have less capital gains taxes to pay is like saying I hope the stock price drops down to what I paid for it so I will have no capital gains taxes to pay.

     

    I do not view the PFE proposal to be shareholder friendly to PFE long time shareholders although it does seem to be a good deal for AZN shareholders. Seems more like Pfizer CEO ego building to me.

     

    It seems PFE R&D has been rather poor for many years and the company has resorted to acquisitions to try to add new drugs.

     

    Dan
    18 May, 10:26 PM Reply Like
  • Gary Schuster
    , contributor
    Comments (155) | Send Message
     
    Dan,

     

    You missed my sarcasm. I have held PFE stock long enough to accumulate a fair amount of capital gains. My plan was to hold onto it during retirement and never sell. Being forced to pay capital gains, to obtain a tax advantage that can disappear if the UK or US governments decide to change their tax codes, seems nonsensical. I'm hoping that something derails this effort before I get that big tax bill.
    19 May, 12:01 AM Reply Like
  • NC Investor
    , contributor
    Comments (349) | Send Message
     
    Gary

     

    Sorry I misunderstood. I have a similar view as yours, namely a large capital gain that will go away when I pass away and my beneficiaries will pay no capital gains tax. So I also hope the deal does not go through.

     

    Dan
    19 May, 09:48 AM Reply Like
  • TRIPP25
    , contributor
    Comments (12) | Send Message
     
    Pfizer has a history of major acquisitions that add little value. I had hoped Pfizer was in the process of trimming its size and realigning its operations for a possible spin off. I was beginning to get excited about Pfizer again but not now. I am,as well, mad as hell over the proposed move of Pfizer's headquarters out of the USA. I hope this deal fails.
    18 May, 11:05 PM Reply Like
  • gwmson
    , contributor
    Comments (12) | Send Message
     
    I own AZN in addition to PFE. Any suggestions as to whether now is a good time to unload AZN after the recent gains?
    18 May, 11:15 PM Reply Like
  • Jcflash
    , contributor
    Comments (27) | Send Message
     
    The best part of the statement is that AZN can reject this final offer, as a PFE shareholder I am praying they reject it. AZN is just too expensive based on their dwindling pipeline.
    18 May, 11:44 PM Reply Like
  • Edsel_A
    , contributor
    Comments (63) | Send Message
     
    I'm long AZN but only purchased 11 months ago ($52) ... Looks like IRS will get a bigger cut than I had hoped since the deadline appears to be May 26.
    19 May, 12:26 AM Reply Like
  • Long Term Value
    , contributor
    Comments (190) | Send Message
     
    I'm a long term PFE shareholder and disgusted with the CEO who cannot care less about his shareholders. The deal is designed so we will owe a large tax while pfe corporate hopes to avoid tax.

     

    I hope the deal fails. I've called the company several times to tell them what I think of their failed corporate governance. Hoping the CEO loses his job.
    19 May, 01:18 AM Reply Like
  • strougo
    , contributor
    Comments (93) | Send Message
     
    Pfe
    there they go again printing stock and using it as currency. Flooding the makers with your stock is dangerous . Too many shares and a few sellers could start an valance of selling
    19 May, 02:09 AM Reply Like
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