AstraZeneca rejects $117bn ‘final takeover offer’ from Pfizer

UK firm says the bid fails to reflect the value of the drugmaker's pipeline of experimental medicines.

AstraZeneca has rejected a sweetened $117 billion takeover offer from Pfizer as too low, saying the bid fails to reflect the value of the United Kingdom drugmaker´s pipeline of experimental medicines.

The proposal, which Pfizer said was a final offer, would present risks for shareholders and harm science in the UK, Sweden and the United States, AstraZeneca said in a statement today.

Pfizer had said it didn´t expect AstraZeneca to accept the new cash-and-stock offer, which values the London-based company at £55 (Dh339.85) a share, and is made up of 45 per cent cash.

On May 2, New York-based Pfizer offered £50 pounds a share, following a previous bid made in January. Pfizer said the new offer would be its last under the current process, and that it won´t take

its bid hostile and attempt to woo AstraZeneca´s shareholders directly.

With a deal, Pfizer would transfer its headquarters to the UK to gain a lower tax rate, add new cancer drugs to its pipeline and take advantage of cost cuts from company overlaps.

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Published: May 19, 2014 04:00 AM

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