Pfizer drops bid for AstraZeneca


As expected, Pfizer (PFE) has abandoned its attempt to acquire AstraZeneca (AZN) for £69.4B ($117B), saying that "it does not intend to make an offer" for the U.K. company after the latter rejected Pfizer's latest proposal.

Under British law, the U.S. giant can not make another bid for AstraZeneca for three-to-six months. (PR)

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Comments (17)
  • hayekvonfriedman
    , contributor
    Comments (1021) | Send Message
     
    AZN shareholders lose to xenophobia.
    26 May 2014, 11:03 AM Reply Like
  • joelkatz
    , contributor
    Comments (570) | Send Message
     
    A win for PFE shareholders, now i'm keeping my PFE shares!
    26 May 2014, 11:27 AM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    agreed. "too good for the British." now let's get this party started in the East.
    26 May 2014, 12:08 PM Reply Like
  • Gary Schuster
    , contributor
    Comments (190) | Send Message
     
    Before Pfizer management makes a new offer I would like to see an analysis that shows how the acquisition of AZN will actually benefit Pfizer shareholders. Yes, a lower tax rate is a positive, but if shareholders are forced to pay capital gains on their shares then do they actually come out ahead? The AZN acquisition would presumably benefit new shareholders--i.e. ones that have no capital gains to pay. It would also benefit people that plan to soon sell their Pfizer stock--I'm wondering if that includes most of Pfizer's senior management? For these groups the lower tax rates, that would result in the re-domicile, would be beneficial assuming that Pfizer does not have to overpay for AZN. For any current stockholders, with significant capital gains, my guess is that they would be losers. I can't think of any good reason why Pfizer management has not addressed this question to justify their efforts to acquire AZN?
    26 May 2014, 11:33 AM Reply Like
  • Harry Polizzi
    , contributor
    Comments (679) | Send Message
     
    Gary,

     

    There's a simple answer to your question of "I can't think of any good reason why Pfizer management has not addressed this question to justify their efforts to acquire AZN?" There would be NO capital gains or any other taxable gains if PFE squires AZN. The acquiring company (PFE) is not selling its shares to make the buy. The shareholders of AZN would have a taxable gain on the MONEY part of the deal, but PFE shareholders would have NO taxable liability, unless they sold their shares before or after the deal was finished.

     

    Ayuh
    26 May 2014, 11:46 AM Reply Like
  • eilea
    , contributor
    Comments (462) | Send Message
     
    Pfizer can move operations out of US, you don't have to pay US tax on items make and sell outside of US.
    26 May 2014, 03:51 PM Reply Like
  • Long Term Value
    , contributor
    Comments (194) | Send Message
     
    Another.analist, you are totally mistaken in this view.

     

    If PFE got AZN, Pfizer shareholders would absolutely have a recognition of their capital gain, fully taxable, whether they sold or continued to hold. This is well documented in PFe's press release of April 28 and written about extensively in the WSJ (see May 9 2014 edition)
    26 May 2014, 01:03 PM Reply Like
  • Long Term Value
    , contributor
    Comments (194) | Send Message
     
    Pfizer's decision to walk away from the AZN transaction is great news for PFE shareholders. Many of us have worked hard by calling the company, writing our political leaders and engaging with the media. We are of the tax burden we would have faced. But this is not enough. I think we need to replace CEO Ian Read who has shown such brazen disregard for the welfare of long term shareholders.
    26 May 2014, 01:07 PM Reply Like
  • cbama12495
    , contributor
    Comments (168) | Send Message
     
    LTV - I agree with you.
    27 May 2014, 04:26 AM Reply Like
  • SoldHigh
    , contributor
    Comments (991) | Send Message
     
    Good move by PFE - but is the company going to exchange overpaying for AZN with overpaying for another company?
    26 May 2014, 01:31 PM Reply Like
  • RoseNose
    , contributor
    Comments (10184) | Send Message
     
    I decided to sell anyway, just don't want this company anymore.
    It got back to even for me, and has been going sideways for years.
    3.5% yield is not enough for me to watch this play out. I can find something better.
    IMO: Rose.
    26 May 2014, 03:12 PM Reply Like
  • cbama12495
    , contributor
    Comments (168) | Send Message
     
    Rose, I am a long term shareholder and have accumulated to point that it now constitutes 10% of my portfolio. The only acquisition that actually panned out was Warner Lambert for Lipitor. As for Pharmacia,Wyeth and King, they were very questionable. Asperion was a total loss at around 3B. I am thinking of exiting.
    27 May 2014, 04:48 AM Reply Like
  • Stock_doc
    , contributor
    Comments (348) | Send Message
     
    Time to watch AZN's board squirm.
    26 May 2014, 03:36 PM Reply Like
  • moseharper
    , contributor
    Comments (663) | Send Message
     
    Take the time to find and buy a company or companies that will help you for the future. Taxes are onerous, but PFE must be smart about this. The Govt. must face the facts and get capital back in this country.
    26 May 2014, 08:11 PM Reply Like
  • Non Standard Deviation
    , contributor
    Comments (4) | Send Message
     
    No one here is fully aware of what is in AZn's pipeline. If you are, then you would have insider information. I've said all along that there is something far more valuable to Pfizer in buying AZN than what is being told. AZN's R&D is best in class. AZN board is in the know and there's a reason why AZN board rejected the final $92.48 a share offer so swiftly. We'll find out soon enough as to why. AZN released a large upward revision on earnings that came out because of this bid from Pfizer and that in itself is already a huge win for AZN shareholders. Also, just because Pfizer couldnt pick them up, I wouldnt be surprised if another suitor enters the picture to scoop up AZN, especially now that the cat is out of the bag on what AZN's current value really is. Pfizer is already regretting in bumping the bid by a mere 8 billion, which would have gotten the deal done. AZN doesnt need to be bought, so a new suitor will have to move very quickly because as each day passes, AZN gains more leverage and even $102 a share offer wont work. If the new suitor moves quickly then they can still get AZN at the $101.72 a share price tag that the AZN board will agree to. No matter what, this was all a huge win win for AZN shareholders.
    26 May 2014, 09:28 PM Reply Like
  • eilea
    , contributor
    Comments (462) | Send Message
     
    This is huge lose for AZN shareholders. Just watch the stock price for the next few months.
    26 May 2014, 11:14 PM Reply Like
  • bberuch
    , contributor
    Comments (314) | Send Message
     
    will there be a new suitor? I don't know, Pfeizer had a special situation in that it was looking at a tax benefit. Is AZN's pipeline that good that it merits $102 per share?
    It was in the sixties prior to the initial offer. I am not convinced that a wild feeding frenzy was justified.
    27 May 2014, 05:51 AM Reply Like
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