AstraZeneca rejects ‘final’ Pfizer takeover bid
The long winded acquisition of AstraZeneca by Pfizer seems to be over, as of this morning AstraZeneca turned down what is to be Pfizer’s “final” offer. This will be deemed as great news by the science select committee, who strongly opposed the takeover.
However it’s not all good news as AstraZeneca share price has fallen dramatically this morning after announcing they had turned down the offer from rival pharmaceutical firm Pfizer. The offer is thought to be around £70 billion in total, but AstraZeneca felt that this offer really undervalued the company and its attractive prospects.
AstraZeneca chairman Leif Johansson spoke to Radio 4’s Today programme, suggesting that Pfizer had been unable to build a compelling strategic business or value case. With Pfizer’s desire to take over AstraZeneca one to do with corporate financial benefits. Johansson also stated the he still believed that AstraZeneca were able to provide better value for it’s shareholders independently, without having to team up with a larger firm.
The deal had carried a huge risk and had been seen as very controversial, with the merits of a takeover of the British firm being debated in the House of Commons. There has been suggestion that if the takeover had been completed, it may have limited AstraZeneca ability to get drugs to market quickly.
Ian Read chief executive of Pfizer stated that the firms stands by its offer to the British govenrment to retain at least 20% of AstraZeneca’s R&D workforce in the UK for at least 5 years. It the deal had also concluded Pfizer did promise to move their European HQ to Britain.
Mr Johansson added: “AstraZeneca has created a culture of innovation, with science at the heart of its operations, which will continue to create significant value for patients, shareholders and all stakeholders of AstraZeneca.”
Turning down the new bid from Pfizer has been very damaging for AstraZeneca’s share price this morning, as stocks in the company had slipped by more than 13% in the early stages of trading this morning.