Pfizer drops AstarZeneca take over bid
28 May 2014
US pharma major Pfizer dropped its bid to take over AstraZeneca for £69 billion, after the two companies failed to agree to terms before the 'put up or shut up' deadline approached.
AstraZeneca stock trading currently at around 420p per share, fell 13 per cent since Pfizer initiated the acquisition attempt a month ago.
The US company was widely expected to pull out after AstraZeneca's refusal of its final offer of £55 a share.
The UK group was looking for least £58.85 per share for its board to consider a recommendation, following Pfizer's prome not to go hostile by taking its offer directly to AstraZeneca shareholders.
Under UK takeover rules, a six-month cooling off period would now follow, but Pfizer could make another attempt to take over the UK company after six months, or it could return at AstraZeneca's invitation in three months time.
AstraZeneca's rejection of Pfizer's final offer of £55 a share on Friday, valuing the firm at £69 billion, came after its board said that Pfizer had significantly undervalued the company.
"Following the AstraZeneca board's rejection of the proposal, Pfizer announces that it does not intend to make an offer for AstraZeneca," the company said in a statement.
"We continue to believe that our final proposal was compelling and represented full value for AstraZeneca based on the information that was available to us," CEO Ian Read said.
According to Read the US company's pursuit was a "potential enhancement" of its existing strategy, and the company would continue to focus on the "execution of our plans, bringing forth new treatments to meet patients' needs and remaining responsible stewards of our shareholders' capital".
"Our focus is on the bringing forth new treatments in areas of high unmet medical need such as Oncology, Immunology and Cardiovascular-Metabolic that address patients' needs," Andrew Widger, senior director of media relations at Pfizer, said in an e-mailed response to IB Times UK.
"We will continue to look at and evaluate any other potential transaction that creates value for our shareholders and benefits patients."