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AstraZeneca: Pfizer Acquisition Offer Rejected

AstraZeneca: Pfizer Acquisition Offer Rejected

By    |   Friday, 02 May 2014 02:35 PM EDT

Drugmaker AstraZeneca has again rejected an acquisition bid from Pfizer, the British company announced Friday.

"The financial and other terms described in the proposal are inadequate, substantially undervalue AstraZeneca, and are not a basis on which to engage with Pfizer," AstraZeneca said in a statement. "The large proportion of the consideration payable in Pfizer shares and the tax-driven inversion structure remain unchanged. Accordingly, the Board has rejected the proposal."

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Pfizer offered Britain's second largest pharmaceutical firm 50 pounds per share ($84.47) and set the valuation at $106 billion. Last month, Pfizer revealed that AstraZeneca rejected a January bid of $76.62 per share and a valuation of $98.6 billion.

"We believe our proposal is responsive to the views of AstraZeneca shareholders and provides a sound basis upon which to arrive at recommendable terms for the combination of our two companies," Pfizer Chairman and CEO Ian Read said about the increased offer in a statement.

There has been a lot of proposed consolidation in the pharmaceutical industry this year. CNN Money reported that about $163 billion worth of health-care mergers have already been proposed in 2014, up almost 50 percent from last year, citing Dealogic statistics.

In late April, Valeant Pharmaceuticals combined with hedge fund manager Bill Ackman to make a $46 billion offer for Botox-maker Allergan.

That same week, GlaxoSmithKline announced a $20 billion partnership with Novartis.

If Pfizer eventually finds a price to AstraZeneca's liking, a deal would rival Pfizer's $112 billion purchase of Warner Lambert in 2000 and expand the company's cancer-treatment drug portfolio.

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TheWire
Drugmaker AstraZeneca has again rejected an acquisition bid from Pfizer, the British company announced Friday.
astrazeneca, pfizer, acquisition, rejected
281
2014-35-02
Friday, 02 May 2014 02:35 PM
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