Astrazeneca is off its 52 week high after rebuffing offers from Pfizer this month. In its final proposal announcement, Pfizer announced a possible offer comprising, for each AstraZeneca share, 1.747 shares in the combined entity and 2,476 pence in cash, representing an indicative value of £55.001. Shares of AZN are trading at $72.67 this morning versus a 52 week high of $82.68.
It appears that Pfizer’s attempt to acquire AstraZeneca for roughly $120 billion has failed. The AZN Board of Directors has rejected the offer and Pfizer’s CEO appears to be reluctant to try for a hostile takeover. Part of the AZN Board’s desire to remain independent stems from its belief that AZN’s growth prospects are excellent. Indeed, AZN CEO, Pascal Soriot, has said that AZN ‘s revenues can grow to $45 billion by 2023, up from $25.7 billion last year.
So another multi-billion dollar proposed merger between corporate giants is kaput. Pfizer announced on Monday it is abandoning its unsolicited bid to acquire British pharmaceutical company AstraZeneca after the company rejected its offers four times. A less obvious ramification of the proposed deal, though, still must play out even though Pfizer is throwing in the towel: namely Pfizer’s bid infuriated many in Congress because it would allow the company to reincorporate in the U.K.
Pfizer's final bid for AstraZeneca values the British drugmaker at £55 a share, or $116 billion, but AstraZeneca board rejects it. Pfizer says it won't go hostile, and AZN share price plunges to £42.05. London market falls, but is saved from harder landing by lift from airline shares.
Pfizer confirmed today that it had asked AstraZeneca to consider a merger, and been rebuffed. Under U.K. law, it had to disclose the offer and went public with a $98.7 billion offer to buy the London-based drug maker. The deal will be 70% cash and 30% stock, and will provide Pfizer with a way to use funds it has kept out of the U.S. without paying U.S. taxes. The deal would also allow Pfizer to lower its tax rate by creating a holding company in the U.K.
Pfizer says it does not intend to make a takeover offer for British drugmaker AstraZeneca. The announcement Monday comes a week after AstraZeneca's board rejected a proposed $119 billion buyout offer from Pfizer, the world's second-biggest drugmaker by revenue. Pfizer Chairman and CEO Ian Read says the company's final proposal represented full value for AstraZeneca, saying their businesses would be stronger together.
Pfizer quit its months-long pursuit of rival AstraZeneca Monday, officially declaring it does not intend to make a new offer after the British drugmaker's rejection of its $119 billion bid last week. Pfizer had described its latest offer as final and said it would not pursue a hostile deal if AstraZeneca declined to open formal negotiations. After it was rebuffed, Pfizer went public with a $100 billion cash-and-stock offer for the company in late April.
British drug maker AstraZeneca rejected Monday what its New York-based rival Pfizer called over the weekend its "final" takeover offer. In a statement, AstraZeneca's board cited the "uncertainty and risks" for shareholders as a reason for the rejection, which came just hours after the maker of the erectile-dysfunction drug Viagra had upped the value of its bid to about $93 a share in a deal that would have led to the world's largest drugs company.
Pfizer may sweeten its offer for Britain's AstraZeneca Plc to more than 63 billion pounds, or $106 billion, and raise the cash portion of the deal, to kickstart negotiations, Bloomberg reported on Thursday. Citing people with knowledge of the matter, the report said a new bid may value AstraZeneca at more than 50 pounds per share and could come as early as next week. Pfizer disclosed earlier this week that it had twice approached AstraZeneca about a takeover, only to be rebuffed in both cases.
Pfizer said on Monday it had abandoned its current attempt to buy AstraZeneca for nearly $118 billion as a deadline approached without a last-minute change of heart by the British drugmaker. "Following the AstraZeneca board's rejection of the proposal, Pfizer announces that it does not intend to make an offer for AstraZeneca," Pfizer said in a short news release.
Pfizer shares are slipping after the drug maker posted first-quarter profits 15 percent lower than a year earlier and revenue down 9 percent. Net income of 57 cents a share beat expectations by 2 cents, but $11.3 billion in sales fell short of analysts' estimates of $12.1 billion. The weaker-than-expected report comes days after its latest offer to purchase British drug maker AstraZeneca for $106 billion was rejected.
Corporate transactions provide the main impetus in European trading on Tuesday in the absence of significant economic data. AstraZeneca loses more ground after Pfizer officially pulled its $116.9 billion takeover proposal. InterContinental Hotels Group surges following a report it has received and rejected a $10 billion bid from as mystery U.S. suitor keen to cut its tax bill.