Pfizer, AstraZeneca Hold Talks After Pfizer Sweetens Offer: Sources.
The Wall Street Journal (5/2, Subscription Publication) reported Pfizer and UK’s AstraZeneca held discussions over Pfizer’s acquisition offer, after the US firm increased its offer price, citing people close to the matter. The paper noted that details of the new, informal offer weren’t available but the earlier offer of nearly $100 billion wasn’t received positively by AstraZeneca, which felt it “significantly undervalued” the firm.
However, Bloomberg News (5/2, Baigorri, Welch, Armstrong) provided a dollar figure for the sweetened bid, noting Pfizer has agreed to increase it to more than $106 billion and a larger cash component, citing sources. Bloomberg News reported that Pfizer CEO Ian Read “is on a charm offensive in the U.K. this week and would prefer to negotiate a friendly deal.”
A Reuters (5/2, Hughes, Unmack) “Breakingviews” piece argues that that contrary to some past takeover bids, Pfizer’s has ample incentive to seek a quick negotiated deal in its bid for AstraZeneca.
Bloomberg News (5/2, Staley, Donaldson) reported Pfizer’s bid “faces increased resistance” as AstraZeneca Chairman Leif Johansson laid out the reasons it had rejected the offer. Johansson said the offer had “significantly undervalued” AstraZeneca. He said in a video released on the firm’s website, “AstraZeneca has a clear innovation-based strategy, focused on achieving scientific leadership and returning to growth.” He added, “The board is also confident in our ability to successfully execute that strategy as an independent company.”
In an analysis, Bloomberg News (5/2, Pettypiece) reported that Pfizer’s bid to buy AstraZeneca would probably “lead to billions of dollars in research cuts, laboratories being closed and thousands of scientists being fired if history repeats itself.” Bloomberg News quoted John LaMattina, former Pfizer chief scientist until 2007, as saying, “The fewer number of companies that exist, the worse it is for patients because you have fewer people out there discovering things.”
BBC News (5/2) discussed two elements that it noted have emerged from Pfizer’s offer, one is the UK government’s “attitude to the deal, which according to two very senior figures in Whitehall is warming up rapidly.” The other element is China, “which will be keeping a watchful eye on events in the City involving two drugs companies that occupy positions one and two in the Chinese pharmaceuticals market.” |
