AstraZeneca blames Pfizer for bringing prospects of a deal to a close - UPDATE

20th May 2014 20:30

Drugs giant AstraZeneca on Tuesday evening issued a statement highlighting that Pfizer's final offer had been made without prior discussion with it and despite having previously indicated to the US firm the price and other bases on which it would have been prepared to recommend an offer to its board.In a pointed regulatory release the Anglo-Swedish giant also emphasised that under existing Takeover Panel rules Pfizer, which said its last offer was 'final', cannot now announce a firm offer for Astra without a clear recommendation from the company's board regarding the price and other terms of the offer. Neither can Pfizer, even with the consent or recommendation of the board of AstraZeneca, commit to an increase in the price offered, nor may it suggest that it may do so publicly or privately, the company led by Pascal Soriot added. Shareholder reaction hasn't finished playing out yet?That came as sources close to the US company told The Daily Telegraph that they believed the shareholder reaction "hasn't finished playing out" and in the wake of criticism from several fund managers against both firms for bringing the prospects for a possible deal to a premature ending. Leif Johansson, the Chairman of AstraZeneca, said: "We have decided that it is necessary to issue a statement to make absolutely clear that Pfizer's final proposal, which the board rejected, is not capable under the takeover panel rules of being increased or even suggested at being increased, privately or publicly, with or without the board's approval or recommendation. "This restriction that prevents further negotiation on value is a consequence of Pfizer's actions. The board has made clear in its statement of May 19th 2014 that it is not in the interests of AstraZeneca shareholders to recommend an offer unless the value of the company and its protected delivery to shareholders is properly represented by the amount and terms of the offer."Lastly, the group repeated that there was no certainty that an offer will be made and "strongly advised" shareholders not to take any action.The American Depositary shares of AstraZeneca ended the New York session trading 2.21% higher at $72.20. NR