AstraZeneca rejects Pfizer takeover offer

2nd May 2014 12:08

Late on Friday morning at 11:00, AstraZeneca issued a statement saying that Pfizer's sweetened takeover proposal, presented only a few hours earlier, did not provide a basis "on which to engage with Pfizer".That followed a meeting of the Anglo-Swedish group's board which found that the financial and other terms included in the same were "inadequate" and continued to "substantially undervalue" the outfit. More specifically, the London-listed outfit criticised the large proportion of the consideration which was payable in shares of its US rival and the "tax-driven" inversion structure.In his reply, Astra's Chief Executive, Leif Johansson, emphasised the value which will be generated by what he described as the company's "rapidly progressing pipeline [of new medical treatments]" and the risks which a purchase by Pfizer would entail to its "delivery". Johansson therefore indicated that the board did not hesitate to reject the proposal. Shares of AstraZeneca were down by 0.56% to 4,788p following the announcement.AB