Boston, MA 08/25/2014 (wallstreetpr) – It seems Pfizer Inc. (NYSE:PFE) is adamant for an overseas takeover to get the tax inversion benefits and expand its product portfolio. It can place a renew bid for AstraZeneca plc (ADR) (NYSE:AZN), on November 26, 2014. But if AstraZeneca wants, it can invite Pfizer for further discussion after August 25, 2014. Pfizer is also considering the other acquisition options including Actavis plc Ordinary Shares (NYSE:ACT).
The persistent efforts
Initially, Pfizer Inc. (NYSE:PFE) has offered a $116 billion bid to acquire AstraZeneca. The bid was cancelled on May 26, and as per the U.K. takeover rules, Pfizer can bid for AstraZeneca again after six months on November 26. AstraZeneca rejected the bid offer of Pfizer on the basis of low valuation. Pfizer has offered 55 pounds a share as offer price whereas AstraZeneca asked for minimum 58.85 pounds a share for the final deal. The deal price of 58.85 pounds a share is considered as a high offer price for AstraZeneca.
The offer price
The company has got solid pipeline of experimental drugs. It has instilled a confidence in the board to seek a higher offer price. AstraZeneca plc (ADR) (NYSE:AZN) plans to spend around $2.1 billion for bringing in new respiratory treatments. Also, it expects to achieve successful trial results of its three cancer-medicines. If it happens, AstraZeneca can get a healthy market share in the industry.
The interest
Pfizer Inc. (NYSE:PFE) is looking for a deal that will results in cost reductions for the company. Also, it wants to achieve lower tax rates and get access to overseas cash. Pfizer will consider the product pipeline of AstraZeneca, who has got 15 drugs in final trials or waiting for regulatory approval. The experimental drugs have doubled in number from a year ago. Pfizer Inc. (NYSE:PFE) will evaluate all the existing opportunities and will select the company that can create long-term value for its shareholders.
