Reports of new Pfizer AstraZeneca bid pushes up FTSE
Healthcare stocks have risen again, they are currently being led by AstraZeneca. Who have seen an increase in their own share price due to rumours circulating that Pfizer might make another bid.
The share price for AstraZeneca rose by three percent to 4,411.50p, while GlaxoSmithKline also had some success with an increase in 1.2 percent to 1,434.50p. Many experts believe that this is only the start, and that the share prices in the sector are only going to rise.
After a cooling off period AstraZeneca can invite Pfizer back for talks and this is what has caused the share price of AstraZeneca rise. After AstraZeneca rejected three previous bid from Pfizer, talks could start as early as Tuesday signalling the end of the cooling off period. Although many experts are expecting talks to begin again towards the end of the year.
Lower down the drugs chain, Jordan-based Hikma Pharmaceuticals enjoyed second place on the mid-cap FTSE 250 index, rising three per cent to 1,742p, after falling more than six per cent in the previous session following its first-half results.
Irish building supplies group CRH also saw good gains, up two per cent to 1,401p, with traders citing a rating upgrade to “market-perform” by Bernstein, partly on valuation grounds.
So with the expert opinion it means the festive period could be a time to watch when it comes to Pfizer and AstraZeneca, I personally believe that AstraZeneca will continue to snub Pfizers offers, due to CEO Pascal Soriot orders. Which could cause Pfizer to turn the potential takeover hostile which wouldn’t play into Soriots favour, with many of the shareholders willing to accept the previous offers of Pfizer. Soriot will have a task on his hands to keep his dream for AstraZeneca alive and still persuade others to come round to his way of thinking.
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