AstraZeneca to meet and discuss Pfizer proposal

2nd May 2014 09:34

AstraZeneca issued a statement on Friday acknowledging the receipt of Pfizer's non-binding proposal."The board of AstraZeneca will meet to discuss the proposal and a further announcement will be made when appropriate."There can be no certainty that any offer will be made or as to the terms of any offer. Shareholders are strongly advised to take no action," the Anglo-Swedish pharmaceuticals group said. Before Friday's opening bell US pharmaceuticals giant Pfizer raised its offer for AstraZeneca by 7.2% to £50 per share, in cash and stock, from £46.61 beforehand.That equates to a 39% premium versus the closing price of AstraZeneca on January 3rd, when the initial offer was made, the US company said in a statement. Under the proposed terms of the transaction shareholders of AstraZeneca would receive 1.845 shares in the combined company and £15.98 in cash in exchange for each one of their shares.Previously analysts at Panmure Gordon had indicated that a bid towards £53-54 would suffice to tempt the company's shareholders into considering the approach.As of 09:33 shares of AstraZeneca were lower by 0.75% to the 4,779p mark.AB