AstraZeneca rebuffs Pfizer approach

Published: 28-Apr-2014

Proposed transaction \'significantly undervalues the company and its prospects\'


AstraZeneca has voiced concerns about Pfizer's potential takeover offer.

The company said today (28 April) in a statement that it 'very significantly undervalues' the company and its prospects. It also said it has concerns about the proposed transaction structure, which contained a large proportion of the deal in Pfizer shares.

AstraZeneca said its share price has performed 'strongly and consistently' since late last year and the company has continued to deliver on its strategy to focus on strengthening its business in three high-growth therapeutic areas of oncology; cardio-metabolism; and respiratory, inflammation and autoimmunity.

The company said it remains committed to capitalising on existing growth platforms, in particular in heart drug Brilinta, diabetes, respiratory, in Japan, and in emerging markets such as China.

AstraZeneca said it has demonstrated 'strong momentum' across all elements of this strategy and the Board remains confident in the ongoing execution of this strategy as an independent company and that its successful delivery will create significant value for shareholders.

On 26 April, Ian Read, Chairman and CEO of Pfizer, contacted Leif Johansson, Chairman of AstraZeneca for the first time since January 2014, AstraZeneca said. In this discussion, Read 'did not make a specific proposal regarding an offer to acquire AstraZeneca, but nevertheless Pfizer requested that both companies issue a joint statement, prior to the market opening on 28 April, announcing that they had entered into discussions regarding a combination'.

AstraZeneca said the Board considered this request and concluded that, in the absence of a 'specific and attractive proposal', it was not appropriate to engage in discussions with Pfizer.

You may also like