Is Pfizer done with AstraZeneca? Not so fast.


Pfizer (PFE) could still raise its bid for AstraZeneca (AZN) despite its statement that its latest offer was final and the apparent restrictions in doing so per the U.K. City Code on Takeovers and Mergers. All its has to do is get the AZN BOD to recommend its higher proposal.

AZN got a welcome endorsement from one of its major institutional shareholders, Neil Woodford, when he stated that AZN will earn better returns for shareholders by remaining independent. Other big stakeholders like Axa Investment Managers and Schroder Investment Management have complained that AZN management should have negotiated with PFE instead of quickly rejecting its offers.

This one ain't dead yet. PFE may only have to raise its bid ~10% to get it done. This doesn't seem insurmountable.

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Comments (7)
  • Willow Street Investments
    , contributor
    Comments (2369) | Send Message
     
    No PFE shareholder wants this horrible deal. Enough already.
    21 May 2014, 07:35 AM Reply Like
  • BlueOkie
    , contributor
    Comments (10480) | Send Message
     
    If Congress changes the corporate tax laws, this dies a fast death!
    21 May 2014, 08:22 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (2369) | Send Message
     
    Congress won't do anything. They are all a bunch of sociopaths.
    21 May 2014, 08:24 AM Reply Like
  • locutus49
    , contributor
    Comments (1057) | Send Message
     
    Europe is rejecting USA deals right and left (GE, PFE are the big ones). I'm guessing they are sending America a message.
    21 May 2014, 09:42 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (2369) | Send Message
     
    The message is American corporate boardrooms treat most of their employees horribly.
    21 May 2014, 10:19 AM Reply Like
  • 1 of 4
    , contributor
    Comments (125) | Send Message
     
    I own both PFE and AZN. Big mistake for AZN to turn down this deal. PFE selling for 9x trailing earnings and AZN selling for 45x. I've got big gains in both, but AZN better have some crazy blockbuster drugs in the pipeline to justify turning this down.
    22 May 2014, 12:45 AM Reply Like
  • jsijimmy
    , contributor
    Comments (556) | Send Message
     
    There is not enough room in a Seeking Alpha article/news blog to discuss the tax issue behind this deal. However, from a pure investment perspective, Pfizer needs to 1) go find smaller companies performing cutting edge research, and 2) get back some of the economic moat they sold when they gave up their consumer division - luckily, they bought Wyeth and it came with a 'mini' economic consumer division.....PFE - take our money, our shares, and our company on a more solid path - leave AZN in England and come back to USA!
    22 May 2014, 07:57 AM Reply Like
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