Tuesday, May 26, 2015Tuesday, May 26, 2015

Pfizer chases AstraZeneca for potential $125 billion deal

Published on Apr 29, 2014 3:46 AM

LONDON/NEW YORK (REUTERS) - US drugmaker Pfizer Inc approached Britain's AstraZeneca Plc two days ago to reignite a potential US$100 billion (S$125 billion) takeover and was rebuffed, raising investor expectations it will have to increase its offer to close the deal.

Pfizer said on Monday it proposed a takeover to AstraZeneca in January worth 58.8 billion pounds, or nearly 47 pounds per share. It had contacted its British rival again on Saturday, seeking to discuss further a takeover.

The chase was welcomed by investors in both companies, as deal-making grips the healthcare industry. AstraZeneca shares were up 11.7 per cent at US$76.69 in New York on news of the latest offer, which would be the biggest foreign acquisition of a British company and one of the largest pharmaceutical deals. Pfizer shares were up 3.8 per cent at US$31.92 on the New York Stock Exchange on Monday afternoon.

AstraZeneca said Pfizer's suggested offer undervalued the company "very significantly," adding that Pfizer wanted to pay 70 per cent in shares and only 30 per cent in cash.

Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!