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Pfizer chief says shareholders supportive of decision to walk away from AstraZeneca

  • Pfizer (PFE -1.2%) CEO Ian Read says shareholders like his discipline in dealing with his attempted acquisition of AstraZeneca (AZN -1.1%). He says they are supportive of his decision to walk away after AZN's BOD rejected his ₤55 bid. The AZN board would not engage in negotiations unless Pfizer increased its offer to ₤59.
  • Under U.K. law, AZN could reach out to PFE in August to rekindle the matter. PFE must wait six months (November) before it can take the initiative to restart the process.
  • Mr. Read says his team continues to evaluate other potential deals.
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Comments (7)
  • crazty4tennis
    , contributor
    Comments (545) | Send Message
     
    Definitely PFE has made a wise move by walking away from the AZN deal. Long PFE.
    29 Jul, 04:39 PM Reply Like
  • JustmeJean
    , contributor
    Comments (2) | Send Message
     
    I totally agree and hope they don't change their minds. Long PFE
    29 Jul, 05:29 PM Reply Like
  • stuff2gil
    , contributor
    Comments (20) | Send Message
     
    No wonder stockholders didn't want deal.....tax consequences bad for anyone holding stock 10 years or greater.
    29 Jul, 05:29 PM Reply Like
  • zachary k
    , contributor
    Comment (1) | Send Message
     
    Pfizer must close the deal in November and they will in order to stay relevant and attractive to Shareholders
    29 Jul, 05:29 PM Reply Like
  • danr66
    , contributor
    Comments (21) | Send Message
     
    Continue to evaluate other deals? Such as??
    29 Jul, 05:50 PM Reply Like
  • DGI_Dan
    , contributor
    Comments (77) | Send Message
     
    This is good for shareholders in short term but bad in longer term. PFE needs to acquire other companies to improve its product pipeline for future revenues. AZN has a good pipeline which would have benefitted all shareholders. I am sure PFE can find other candidates for takeover/merger.
    29 Jul, 08:21 PM Reply Like
  • Gary Schuster
    , contributor
    Comments (155) | Send Message
     
    DGI_Dan, I agree it was good for PFE shareholders in the short term because we avoided having to pay capital gains. In the longer term it is not clear that the failure to complete the acquisition was bad. PFE was offering to pay a significant premium for AZN. It is not known whether AZN's future cash flows are large enough to make PFE's offer advantageous for PFE shareholders? The tax advantages that an AZN acquisition seems to offer could quickly vanish with changes in the tax law in either the U.S. or the UK. I agree with your ending comment--i.e. PFE can find other candidates. Hopefully ones with cash-flows and synergies that make the purchase more likely to be advantageous for PFE shareholders in the long term and sans the clear disadvantages associated with the ANZ acquisition in the short term.
    30 Jul, 12:14 AM Reply Like
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