AstraZeneca refuses Pfizer’s ‘final’ offer


AstraZeneca’s (AZ) board has rejected another increased offer in Pfizer's attempt to initiate a merger. The US giant has described this proposal, valuing AZ at £70 billion, as ‘final’ and says it ‘cannot be increased’. Pfizer has also stated that it will not make a hostile offer direct to AZ’s shareholders.

In their dismissal of the proposal, AZ’s board said that the final offer ‘continues to fall short of [our] view of value’, and that it ‘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’. Of particular concern was the board’s assessment that the proposal continues to emphasise tax advantages over operational ones. ‘Pfizer has failed to make a compelling strategic, business or value case,’ the board noted.

There are still some circumstances under which the deal could proceed, and Pfizer is urging AZ’s shareholders to convince the board to enter negotiations before the offer expires on 26 May. Pfizer’s chief executive Ian Read said in the final proposal, ‘We remain ready to engage in meaningful dialogue ... We believe that our proposal represents compelling and full value for AstraZeneca and that other issues that have been raised by AstraZeneca do not represent material difficulties.’


Related Content

Pfizer presses hard for AstraZeneca deal

14 May 2014 Business

news image

Executives face down international controversy over tax schemes and previous post-merger record

Time called on Pfizer–AstraZeneca deal

28 May 2014 Business

news image

Pfizer could make a fresh approach after six months under City takeover rules

Most Read

Better batteries with pure lithium anodes

28 July 2014 Research

news image

Protective carbon nanosphere coating overcomes lithium problems, pointing the way to improved capacity

Takeover battle pushes Allergan to cut R&D jobs

28 July 2014 Business

news image

Besieged by serially acquisitive Valeant, the Botox maker will lay off 1500 staff to propel earnings growth

Most Commented

Isoamyl acetate

30 July 2014 Podcast | Compounds

news image

It makes a sweet banana-flavoured treat, but can ruin home brewed beer; Jenna Bilbrey introduces isoamyl acetate

Relativity behind mercury's liquidity

21 June 2013 Research

news image

First evidence that relativistic effects are indeed responsible for mercury's low melting point