Pfizer Inc. revives approach to AstraZeneca PLC about takeover proposal

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – Pfizer Inc. said Monday that it renewed its takeover plans of AstraZeneca PLC valued at almost $100bn, although the British drug firm had declined to engage in negotiations. The U.S. pharmaceutical giant also said that it is currently considering its options.

Pfizer said it had initially approached AstraZeneca at the start of the year regarding possible merger for both companies and they held “high-level” discussions, but these were halted on Jan. 14. On April 26, Pfizer said its second approach with the company.

Pfizer’s earlier proposal made to the AstraZeneca board on Jan. 5 included a mix of shares and cash in the combined company, representing an indicative value of 46.61 British pounds ($76.62) per AstraZeneca share and a premium of 30 percent to AstraZeneca’s Jan. 3 closing share price of 35.86 British pounds.

The indicative price values AstraZeneca at around 58.73bn British pounds ($98.68bn).

Following Pfizer’s announcement, AstraZeneca described the proposal as significantly undervalued the company and its prospects.

AstraZeneca’s chairman Leif Johansson was contacted by Pfizer Chief Executive Ian Read on Saturday and requested that both companies issue a joint statement saying they had entered into talks regarding a deal, according to the British firm.

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