ASTRAZENECA REJECTS PFIZER’S FINAL OFFER

AstraZeneca has rejected Pfizer’s “final proposal” for the company describing it as “inadequate”.

The US drug company increased its May 2 offer by 15% from £50 a share to £55 this morning but it was quickly rejected by AstraZeneca’s board.

In a statement the company 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.”

AstraZeneca is a large employer in the region with around 2,000 staff at a factory in Macclesfield and 400 in Speke. There are also 3,600 at Alderley Park, although most of these jobs will move to Cambridge over the next two years to a new research base.

In a statement the company said Pfizer had floated the prospect of a £53.50 offer on Friday evening but AstraZeneca’s management said it needed to be 10% higher. In response Pfizer said its “represents compelling and full value”. Shares are currently trading at £48 giving the company a market value of £60bn. Pfizer’s latest offer values AstraZeneca at around £69bn.

Pfizer’s chief executive Ian Read said: “We believe our proposal is compelling for AstraZeneca’s shareholders and that a Pfizer-AstraZeneca combination is in the best interests of all stakeholders. We are excited at the opportunity to create a scientific powerhouse, delivering great benefits to patients and science in the UK and across the globe. We stand by our unprecedented commitments to the UK Government. We believe that the benefits to all stakeholders can only be maximised through cooperative engagement between both companies.”

Pfizer has confirmed it will not make a hostile offer directly to AstraZeneca shareholders.