Boston, MA 05/02/2014 (wallstreetpr) – AstraZeneca plc (ADR) (NYSE:AZN) declined Pfizer Inc. (NYSE:PFE) within hours of reception, claiming the offer to be too low.
A Raised Bid
On Friday, Pfizer’s attempt to acquire AstraZeneca was expected to draw to a close as it offered an increased bid of $106.5 billion to the UK based shareholders group. However, the bid was rejected as AstraZeneca’s board found the bid of the world’s largest pharmaceutical company too low. The earlier January offer was 46.61 pounds, which was increased 50 pounds per share on Friday. This had lead AstraZeneca to connect with Pfizer for the first time in the four month chase. The increased offer price additionally included a 32%, from the previous 30%, cash component.
AstraZeneca plc (ADR) (NYSE:AZN)’s Chairman, Leif Johansson, said that the board rejected the offer without any hesitation as the offer threatened the company to dilute its shareholders’ exposure to its unique product pipeline. It risked the company around its deliver, he said. Pfizer had earlier affirmed its commitment to the development of UK Science by writing to the state’s Prime Minister, David Cameron. It had pledged to construct AstraZeneca’s new flagship facility for research and development in Cambridge.
“Devastating Blow”
It is speculated that any probable merger would be the biggest foreign acquisition for a company based in UK, despite the fact that AstraZeneca plc (ADR) (NYSE:AZN) itself has been formed from an international tie- up. In this context, the government of UK seemed to be dormant in taking actions against the merger. It, however, sought to ensure commitment for development of the state’s science. A former science minister, Lord Sainsbury, is strongly against the merger and said that the tie- up would be a highly upsetting move for UK science.
In a statement, AstraZeneca plc (ADR) (NYSE:AZN)’s spokeswoman said that the board will discuss the offer at appropriate time, while affirming the reception of the offer from Pfizer.
