AstraZeneca PLC rejects Pfizer Inc. final offer of 55 pounds per share

Nathan Andrada – Fourth Estate Cooperative Contributor

London, England, United Kingdom (4E) – AstraZeneca PLC said on Monday that it turned down the final increased offer by U.S. pharmaceutical firm Pfizer Inc., providing a blow to the prospects of a megadeal.

Pfizer made a final offer on Sunday valuing AstraZeneca at 55 British pounds ($92.51) per share, or around $120bn, after the UK pharmaceutical firm rebuffed its latest effort to enter acquisition talks.

The new offer compared with Friday’s offer of 53.50 British pounds per share, but AstraZeneca said it had informed Pfizer that any offer would have to be higher by at least 10 percent before they consider it.

AstraZeneca Chairman Leif Johansson said the final proposal has been rejected despite the minor improvement as it continues to fall short of the board’s view of value.

Pfizer said its latest offer raised the cash component of the proposed deal to 45 percent of the total price, valuing AstraZeneca at 55 British pounds per share. Pfizer said it would pay a premium of 45 percent to AstraZeneca’s share price before Pfizer’s interest appeared in media reports.

New York-based Pfizer is offering 2,476 pence in cash for each AstraZeneca stock held and 1.747 shares in the combined company.

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