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| AstraZeneca rejects Pfizer's final £69bn takeover bid | AstraZeneca rejects Pfizer's final £69bn takeover bid |
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| AstraZeneca has rejected Pfizer's £69bn takeover approach, saying the bid undervalues the UK company and poses too many risks. | AstraZeneca has rejected Pfizer's £69bn takeover approach, saying the bid undervalues the UK company and poses too many risks. |
| AstraZeneca's shares tumbled 13% to £42.04 on the news, wiping about £8bn off the company's market value as investors bet that the chance of a deal was now remote. Some of the company's biggest shareholders, including fund manager Jupiter, criticised the Astra board for not engaging with Pfizer. | AstraZeneca's shares tumbled 13% to £42.04 on the news, wiping about £8bn off the company's market value as investors bet that the chance of a deal was now remote. Some of the company's biggest shareholders, including fund manager Jupiter, criticised the Astra board for not engaging with Pfizer. |
| Leif Johansson, AstraZeneca's chairman, said Pfizer's £55 a share valuation fell short of the price that the US company was told was necessary. | Leif Johansson, AstraZeneca's chairman, said Pfizer's £55 a share valuation fell short of the price that the US company was told was necessary. |
| Pfizer said it was prepared to pay £53.50 on Friday but AstraZeneca told Pfizer at the weekend that the price needed to be at least 10% higher, valuing AstraZeneca at about £74bn. | Pfizer said it was prepared to pay £53.50 on Friday but AstraZeneca told Pfizer at the weekend that the price needed to be at least 10% higher, valuing AstraZeneca at about £74bn. |
| Pfizer announced on Sunday night that it would make a final approach at £55 a share and that it would not increase the proposed price. It also increased the cash portion of the bid to 45% from 33% with the rest payable in Pfizer shares. | Pfizer announced on Sunday night that it would make a final approach at £55 a share and that it would not increase the proposed price. It also increased the cash portion of the bid to 45% from 33% with the rest payable in Pfizer shares. |
| Johansson said Pfizer had already said its £53.50 approach was its final offer and that the US company did not warn AstraZeneca about last night's increased proposal. | Johansson said Pfizer had already said its £53.50 approach was its final offer and that the US company did not warn AstraZeneca about last night's increased proposal. |
| Pfizer said it would not make a hostile offer by going straight to AstraZeneca's shareholders, but it called on them to urge the board to enter talks. Pfizer has until 26 May to make a firm offer for AstraZeneca unless the UK company's board asks the takeover panel for an extension. | Pfizer said it would not make a hostile offer by going straight to AstraZeneca's shareholders, but it called on them to urge the board to enter talks. Pfizer has until 26 May to make a firm offer for AstraZeneca unless the UK company's board asks the takeover panel for an extension. |
| Johansson said Pfizer's approach, which falls short of a formal bid, undervalued the Anglo-Swedish company's prospects for producing new drugs as an independent business. | Johansson said Pfizer's approach, which falls short of a formal bid, undervalued the Anglo-Swedish company's prospects for producing new drugs as an independent business. |
| He added that Pfizer's plans to move to the UK for tax purposes and its record for slashing research spending endangered the future of the combined company. | He added that Pfizer's plans to move to the UK for tax purposes and its record for slashing research spending endangered the future of the combined company. |
| Johansson said: "Pfizer's approach throughout its pursuit of AstraZeneca appears to have been fundamentally driven by the corporate financial benefits to its shareholders of cost savings and tax minimisation. | Johansson said: "Pfizer's approach throughout its pursuit of AstraZeneca appears to have been fundamentally driven by the corporate financial benefits to its shareholders of cost savings and tax minimisation. |
| "From our first meeting in January to our latest discussion yesterday, and in the numerous phone calls in between, Pfizer has failed to make a compelling strategic, business or value case. The board is firm in its conviction as to the appropriate terms to recommend to shareholders. | "From our first meeting in January to our latest discussion yesterday, and in the numerous phone calls in between, Pfizer has failed to make a compelling strategic, business or value case. The board is firm in its conviction as to the appropriate terms to recommend to shareholders. |
| "We have rejected Pfizer's final proposal because it is inadequate and would present significant risks for shareholders, while also having serious consequences for the company, our employees and the life-sciences sector in the UK, Sweden and the US." | "We have rejected Pfizer's final proposal because it is inadequate and would present significant risks for shareholders, while also having serious consequences for the company, our employees and the life-sciences sector in the UK, Sweden and the US." |
| The rejection appeared to end a battle between the two companies unless AstraZeneca shareholders push the board to talk to Pfizer without a higher approach from the US company. | The rejection appeared to end a battle between the two companies unless AstraZeneca shareholders push the board to talk to Pfizer without a higher approach from the US company. |
| Pfizer said it was considering its options. Johansson told the BBC's Today programme he did not know if the deal was dead. | Pfizer said it was considering its options. Johansson told the BBC's Today programme he did not know if the deal was dead. |
| "I have no idea. This has been going on for quite some time, and in very deep engagement over the whole of the weekend. Pfizer now says this is the final offer – I have to believe them at what they say." | |
| Savvas Neophytou, an analyst at brokers Panmure Gordon, said he thought shareholders could yet force AstraZeneca to talk to Pfizer. | Savvas Neophytou, an analyst at brokers Panmure Gordon, said he thought shareholders could yet force AstraZeneca to talk to Pfizer. |
| "There is a lot going on and I suspect there are more developments to come," he said. Under Britain's takeover rules, if Pfizer made a firm offer for AstraZeneca it would have to be recommended to shareholders by the board and it could not be for more than £55 a share. | "There is a lot going on and I suspect there are more developments to come," he said. Under Britain's takeover rules, if Pfizer made a firm offer for AstraZeneca it would have to be recommended to shareholders by the board and it could not be for more than £55 a share. |
| Pfizer's pursuit of AstraZeneca has divided opinion among shareholders with some calling for AstraZeneca to negotiate with Pfizer while others have supported AstraZeneca's board for resisting the bid. | Pfizer's pursuit of AstraZeneca has divided opinion among shareholders with some calling for AstraZeneca to negotiate with Pfizer while others have supported AstraZeneca's board for resisting the bid. |
| A top 10 investor said AstraZeneca's board had failed to represent shareholders' interests but added that a deal now looked unlikely. | A top 10 investor said AstraZeneca's board had failed to represent shareholders' interests but added that a deal now looked unlikely. |
| The fund manager said: "This is the single biggest case of value destruction on behalf of shareholders of all time. | The fund manager said: "This is the single biggest case of value destruction on behalf of shareholders of all time. |
| "I think it [the bid] is closed. Personality clashes have triumphed over shareholder value creation." | "I think it [the bid] is closed. Personality clashes have triumphed over shareholder value creation." |
| By mid morning on Monday, AstraZeneca's market value was £53bn – £16bn less than the price Pfizer had indicated it would pay. | By mid morning on Monday, AstraZeneca's market value was £53bn – £16bn less than the price Pfizer had indicated it would pay. |
| Alistair Gunn, a fund manager at Jupiter, which is one of AstraZeneca's top 30 shareholders, said: "We are disappointed the board of AstraZeneca has rejected Pfizer's latest offer so categorically. They should have at least engaged in a constructive conversation with Pfizer on the details of the offer to assess the opportunities that a combined entity could bring. | |
| "There now seems little room left to manoeuvre with Pfizer having ruled out a hostile bid. We will be expressing our dissatisfaction to the AstraZeneca board over the way the bid process has been handled up to now." | "There now seems little room left to manoeuvre with Pfizer having ruled out a hostile bid. We will be expressing our dissatisfaction to the AstraZeneca board over the way the bid process has been handled up to now." |
| The Viagra maker's offer also stoked a political row because of the potential impact on jobs and Britain's science base. Labour accused the government of acting as a cheerleader for Pfizer and threatened to impose a public interest test if a takeover had not been completed before next year's general election. | The Viagra maker's offer also stoked a political row because of the potential impact on jobs and Britain's science base. Labour accused the government of acting as a cheerleader for Pfizer and threatened to impose a public interest test if a takeover had not been completed before next year's general election. |
| Chuka Umunna, the shadow business secretary, said on Twitter that AstraZeneca had rejected Pfizer's "fast buck" business mentality: "I very much welcome the rejection of Pfizer's final offer by the board of AstraZeneca. The right decision for the company and for the country. | Chuka Umunna, the shadow business secretary, said on Twitter that AstraZeneca had rejected Pfizer's "fast buck" business mentality: "I very much welcome the rejection of Pfizer's final offer by the board of AstraZeneca. The right decision for the company and for the country. |
| "We don't want to see the takeover of great British firms driven by financial engineering – we want them to be driven by long-term investment." | "We don't want to see the takeover of great British firms driven by financial engineering – we want them to be driven by long-term investment." |
| At two parliamentary hearings last week, Pfizer's boss, Ian Read, tried to convince MPs that he wanted to invest in UK scientific research but also admitted that the combined business would have fewer scientists and less research spending than the two companies possess now. | At two parliamentary hearings last week, Pfizer's boss, Ian Read, tried to convince MPs that he wanted to invest in UK scientific research but also admitted that the combined business would have fewer scientists and less research spending than the two companies possess now. |
| AstraZeneca chief executive, Pascal Soriot, told the Guardian last week that AstraZeneca's reputation could be damaged by Pfizer's tax avoidance plans, which will involve Pfizer basing the company in the UK in order to keep its cash pile away from the US tax authorities. He also raised concerns about the proposed break-up of the business, which would have split AstraZeneca's assets between three new Pfizer divisions. | AstraZeneca chief executive, Pascal Soriot, told the Guardian last week that AstraZeneca's reputation could be damaged by Pfizer's tax avoidance plans, which will involve Pfizer basing the company in the UK in order to keep its cash pile away from the US tax authorities. He also raised concerns about the proposed break-up of the business, which would have split AstraZeneca's assets between three new Pfizer divisions. |