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| AstraZeneca rejects £69 billion Pfizer takeover | AstraZeneca rejects £69 billion Pfizer takeover |
| (about 2 hours later) | |
| AstraZeneca has rejected Pfizer’s ‘final’ £69 billion takeover attempt saying it “falls short of AstraZeneca’s value as an independent, science-led company”, sending shares slumping 13 per cent as the City bet the battle was over. | |
| AstraZeneca’s chairman, Leif Johansson, said Pfizer’s £55-a-share bid, raised from £50 a fortnight ago and sharply higher than Astra’s last unaffected share price of £35, was “inadequate”. | AstraZeneca’s chairman, Leif Johansson, said Pfizer’s £55-a-share bid, raised from £50 a fortnight ago and sharply higher than Astra’s last unaffected share price of £35, was “inadequate”. |
| He claimed that Astra’s board would have backed a deal at £58.85, or more than 10% above £53.50, a price Pfizer offered the British drugmaker on Friday — but dismissed the £55 bid. | He claimed that Astra’s board would have backed a deal at £58.85, or more than 10% above £53.50, a price Pfizer offered the British drugmaker on Friday — but dismissed the £55 bid. |
| Shareholders in the FTSE 100 company today said they were “disappointed and surprised” by its decision. | Shareholders in the FTSE 100 company today said they were “disappointed and surprised” by its decision. |
| One top institutional investor said: “AstraZeneca’s board is going to be under huge pressure to prove that the company’s shares are worth £55 or more. | One top institutional investor said: “AstraZeneca’s board is going to be under huge pressure to prove that the company’s shares are worth £55 or more. |
| “If they languish around the levels they have fallen to today, then Pascal Soriot and his team will be facing unrest. They are going to have to deliver their promises — quickly — or there will be call for change.” | “If they languish around the levels they have fallen to today, then Pascal Soriot and his team will be facing unrest. They are going to have to deliver their promises — quickly — or there will be call for change.” |
| Asked whether the takeover tussle was over, Johansson said: “I can sincerely say I don’t know. That is up to Pfizer. You have to ask them how they think it’s going to pan out.” | Asked whether the takeover tussle was over, Johansson said: “I can sincerely say I don’t know. That is up to Pfizer. You have to ask them how they think it’s going to pan out.” |
| Analysts were divided on what happens next. Marc Goodman at UBS wrote: “We still believe Pfizer can find more productive use for $116 billion [£69 billion],” while Panmure Gordon’s Savvas Neophytou noted: “We expect shareholders to press AstraZeneca to accept this new offer but management will likely want to resist.” | Analysts were divided on what happens next. Marc Goodman at UBS wrote: “We still believe Pfizer can find more productive use for $116 billion [£69 billion],” while Panmure Gordon’s Savvas Neophytou noted: “We expect shareholders to press AstraZeneca to accept this new offer but management will likely want to resist.” |
| After a two-hour video conference call between the two sides, AstraZeneca expressed annoyance at Pfizer’s move to go public with the latest approach without giving it warning. | After a two-hour video conference call between the two sides, AstraZeneca expressed annoyance at Pfizer’s move to go public with the latest approach without giving it warning. |
| The US Viagra maker made its latest approach last night, saying its £69 billion offer — which raised the cash component of the deal from around a third to 45% — was “final and cannot be increased”. It added that it would not make a hostile bid and would only proceed with the backing of Astra’s board. | The US Viagra maker made its latest approach last night, saying its £69 billion offer — which raised the cash component of the deal from around a third to 45% — was “final and cannot be increased”. It added that it would not make a hostile bid and would only proceed with the backing of Astra’s board. |
| Mr Johansson said the board found that, “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”. | Mr Johansson said the board found that, “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 chairman added that: “Our investors are a multi-faceted group with different investment horizons. They have elected the board to be independent and come up with a recommendation.” | The chairman added that: “Our investors are a multi-faceted group with different investment horizons. They have elected the board to be independent and come up with a recommendation.” |
| Pfizer has until May 26 to persuade AstraZeneca to enter talks, otherwise it is banned from making another approach for six months | Pfizer has until May 26 to persuade AstraZeneca to enter talks, otherwise it is banned from making another approach for six months |
| Astra’s shares lost 640.5p to 4183.5p. | Astra’s shares lost 640.5p to 4183.5p. |