AstraZeneca rejects Pfizer's final offer of £69B


As tipped, AstraZeneca (AZN) has rejected Pfizer's (PFE) final proposal of £55 a share, or £69B ($117B), saying that the bid "falls short of AstraZeneca’s value as an independent science-led company."

AstraZeneca told Pfizer on Friday that any offer would have to be over 10% above the latter's previous bid of £53.50.

The U.K. company said that while Pfizer's pursuit has been driven by cost and tax savings, it "has failed to make a compelling strategic, business or value case."

Pfizer's final proposal "would present significant risks for shareholders, while also having serious consequences for the company, our employees and the life-sciences sector in the U.K., Sweden and the U.S.," AstraZeneca said.

AstraZeneca's shares are -13.2% at £41.87 in London. (PR)

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Comments (10)
  • Quoth the Raven
    , contributor
    Comments (2063) | Send Message
     
    Hostile takeover next.
    19 May 2014, 07:16 AM Reply Like
  • chopchop0
    , contributor
    Comments (5155) | Send Message
     
    PFE has explicitly said they aren't interested in that.
    19 May 2014, 08:42 AM Reply Like
  • Stock_doc
    , contributor
    Comments (339) | Send Message
     
    They will move on and find something else. GSK is probably too big so they will look outside of England. They might make a go at one of the privately held pharma companies.

     

    They could also bide their time and come back 6 months later and make the same offer. If AZN's stock price remains little changed, then they may be more receptive to the deal.
    19 May 2014, 08:47 AM Reply Like
  • bricius
    , contributor
    Comments (52) | Send Message
     
    I applaud the rejection by AZN. Pfizer management has shown beyond doubt over the years that it was incapable of nurturing the company toward sustainable growth, except by mega mergers to take advantages of cost savings through consolidation and tax advantages. Unfortunately, Pfizer is not the only large pharmaceutical company with that predicament. It is a trend in the industry that must be stopped. Shareholders should hold the executives for failure in managing innovations driving growth. It is much more productive for the company and society at large to reshuffle top executives, or hold them accountable through pay-for-performance. Mega mergers leading to massive lay-off is utterly ugly and should only be used as last resort, and not built-in habit for profit making.
    19 May 2014, 10:29 AM Reply Like
  • NC Investor
    , contributor
    Comments (710) | Send Message
     
    I am happy to see AZN reject the PFE bid. I hope it stands and this is the end of it. Being a long time PFE shareholder I view this act of causing PFE shareholders to pay taxes on PFE gains on shares not sold is simply not shareholder friendly.

     

    I will be surely voting against the current board of directors at the next opportunity.

     

    Dan
    19 May 2014, 11:03 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (2237) | Send Message
     
    Agree 100%.
    19 May 2014, 04:12 PM Reply Like
  • rdwmotherss
    , contributor
    Comments (12) | Send Message
     
    I agree 100pct....It would cost me 10 points in cap gains taxes...This Bd should be ashamed for what is costing long term holdrs
    19 May 2014, 12:43 PM Reply Like
  • John Learch
    , contributor
    Comments (83) | Send Message
     
    Glad to hear that AZN rejected PFE's takeover bid and hope that this deal is gone forever. Long term investors would have been stuck immeasurably with tax on gains not of their choosing. This type of effort causes investors to be wary of long term commitments realizing their gains could be wiped out with deals such as this. After all PFE management should display some loyalty to holders by not engaging in such a move -- they should concentrate efforts on growth with more investment in their own research and development.
    19 May 2014, 01:30 PM Reply Like
  • cwebjohn
    , contributor
    Comments (242) | Send Message
     
    I believe AZN is making a huge mistake here.

     

    When a company offers you gold and you are worth silver, then who is the biggest loser?
    19 May 2014, 01:41 PM Reply Like
  • freeman8201
    , contributor
    Comments (824) | Send Message
     
    keep the company american own.
    19 May 2014, 05:50 PM Reply Like
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