Boston, MA 05/27/2014 (wallstreetpr) – Pfizer Inc. (NYSE:PFE), a New York-based pharmaceutical company, announced its intention of not to pursue further in its quest to acquire the United Kingdom-based AstraZeneca plc (ADR) (NYSE:AZN), since the later has rejected all its bid. This puts a full stop to the nearly month-long battle between the two big drug developers as well as makers.
Aborted Plan
The U.S. pharmaceutical company disclosed that it is not willing to make an offer for the Britain company following the board’s rejection of its bid to buy it. Only a week ago, i.e. on May 18, Pfizer said that it was lifting its acquisition price to approximately $119 billion. However, this was rejected by AztraZeneca’s board as it felt undervaluing the company.
Pfizer Inc. (NYSE:PFE) announced its decision just two hours ahead of the deadline as per the takeover rules of the United Kingdom. The takeover rules specify that the acquirer should either make a firm offer or walk out. The U.S. drug maker preferred walking away than indulging in a hostile bid to approach shareholders directly, which had the potential to spike the stock price.
The U.S. drug maker said that it still believes that its final proposal offered a full value to the British drug maker’s share since the offer was made based on the available information to it. However, AstraZeneca has termed the offer as not sufficient and presents possible risks to its shareholders.
Unsuccessful Bid
The New York-based company has initially offered to buy a British company for $100 billion on May 1. Following the rejection, Pfizer has boosted its offer price to $116 billion and then to about $119 billion on May 18. However, the British drug maker has not only rebuffed all the offers, but has also charged Pfizer of engaging in an opportunistic way to acquire a transformed company by ignoring the product pipeline.
There was also political turmoil in Britain as a result of the alleged Pfizer Inc. (NYSE:PFE)’s takeover records though the U.S. company guaranteed to keep a minimum of 20% of the amalgamated company’s research and development center in the U.K. for five years if the deal comes through.
