Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

AstraZeneca rejects final £55 Pfizer offer

AstraZeneca rejects final £55 Pfizer offer

AstraZeneca has turned down a final offer for the company by rival Pfizer saying that the value of £55 per share ‘undervalues the company and its attractive prospects’.

At 8.45 shares in the business were down 14.17% at £41.39 - back where they stood before the bid was announced in April. 

Following a political row over the attempted buyout, Pfizer ruled out taking the bid hostile. The Labour party, which could be in power by the time any potential bid was finalised, has said it would consider a public interest test before offering regulatory approval. 

Following the rejection of the mixed cash and equity offer Astra chair Leif Johansson said: ‘Pfizer's approach throughout its pursuit of AstraZeneca appears to have been fundamentally driven by the corporate financial benefits to its shareholders of cost savings and tax minimisation.

‘From our first meeting in January to our latest discussion yesterday, and in the numerous phone calls in between, Pfizer has failed to make a compelling strategic, business or value case.

‘We have rejected Pfizer's final proposal because it is inadequate and would present significant risks for shareholders, while also having serious consequences for the company, our employees and the life-sciences sector in the UK, Sweden and the US.’

Pfizer had offered £53 per share after markets had closed on Friday. AstraZeneca indicated that it would not consider anything less than a 10% improvement pf those terms.

The company pointed to what it described as a ‘growing and accelerating’ number of drugs close to approval which it believes could have potential sales of up to $23 billion (£13.6 billion) a year.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Play CIO Tapes: do investors have it as good as it gets?

CIO Tapes: do investors have it as good as it gets?

Citywire gathered three of the UK's leading fund investment heads to discuss what they fear and what makes them cheer about the year ahead

Read More
Your Business: Cover Star Club

Profile: Rathbone's Newcastle boss on the road to £1bn

Profile: Rathbone's Newcastle boss on the road to £1bn

Starting from zero assets on day one, Rathbone's Newcastle team now looks after just over £400 million in clients money

Wealth Manager on Twitter