Pfizer plans job cuts as AstraZeneca slams 'opportunistic' bid - UPDATE

13th May 2014 15:50

Ian Read, Chairman and Chief Executive of Pfizer, said the company would trim job numbers as part of cost-cutting measures if its bid for AstraZeneca was successful, with an improved bid and hostile takeover still on the cards. Facing questions from UK members of parliament about the US company's post-takeover plans, Read made a personal commitment to basing 20% of the company's global research and development staff in the UK for the next five years, but refused to promise not to cut the overall number of UK jobs following the proposed takeover."I really can't give you final numbers," he said, and added that the commitment of 20% was already "unprecedented".He told MPs: "We'll be efficient by some reduction in jobs. What I cannot tell you is how much or how many or where. We'll look at this as our global combined footprint and then we'll make decisions."I do not expect the combined [R&D] budget will stay the same. I expect it to be lower. How much I cannot say."In a statement put out on Tuesday morning, AstraZeneca criticised Pfizer for what it said was an undervalued and 'opportunistic' takeover bid."The board of AstraZeneca believes Pfizer is making an opportunistic attempt to acquire a transformed AstraZeneca, without reflecting the value of its exciting pipeline," a statement from the Anglo-Swedish company said. "This value should accrue fully to AstraZeneca shareholders." "The board reiterates its confidence in AstraZeneca's ability to deliver on its prospects as an independent, science-led business."The statement noted a regulatory news service (RNS) announcement made by Pfizer earlier on Tuesday, which it said contained "no new proposal nor substantive new information".Pfizer was actually forced to reissue a previous announcement about its bid offering "compelling shareholder value" because it had neglected to add disclaimer footnotes on the first version of the statement. Read appeared before MPs on Tuesday to answer questions should its bid be successful, with Pascal Soriot, Chief Executive AstraZeneca, following.OH