Boston, MA 05/16/2014 (wallstreetpr) – The Finance Minister of Sweden requested the AstraZeneca plc (ADR) (NYSE:AZN) shareholders to drop down the takeover proposal of Pfizer. Swedish Finance Minister, Anders Borg, made sensational announcement on May 16, 2014, which shook the business industry.
Anders Borg warns AstraZeneca
The minster urged the shareholders of AstraZeneca, the British-Swedish biological and pharmaceutical company to reject the occupation deal made by Pfizer, the American Pharmaceutical company. The U.S. drug manufacturing company has showed its interest to own the British- Swedish pharmaceutical company. Borg said that this deal may create a risk in the economic conditions, in both the countries.
Borg in his statement mentioned that the shareholders should refuse such ‘semi-hostile’ offer from Pfizer as it could damage the economic stability within the company. The U.S. based Drug Company offered $101 billion as a takeover value. However, the Pfizer is facing opposition from the U.K. and Sweden based policy makers. The lawmaker of U.K. has already questioned the business executives of Pfizer as well as Swedish government on such controversial issue.
CEO says
Borg has spoken to the U.K. Government this week about the deal, which can create a result in job cuts. Astra, the Swedish company, was a result of a takeover by Zeneca in 1999, and since then the presence of the company has reduced exceptionally. The New York based Pfizer made a lucrative offer in the month of January to change its headquartering to the U.K. in order to facilitate the business and gain a corporate tax cut. The Chief Executive Officer of AstraZeneca, Pascal Soriot, stated on May 14, 2014 that the company rejected that proposal.
However, Pfizer has planned to increase the deal amount, said by the professionals in this regard. Hence, it appears that the London- headquartered AstraZeneca plc (ADR) (NYSE:AZN) has been rightly cautioned to not get into the hands of American Pharmaceutical Company. However, the final decision lies in the hands of British- Swedish pharmaceutical company, whether to accept the offer or to comply with Borg’s warning.
