By Dow Jones Business News,
April 28, 2014, 05:55:00 AM EDT
By Dana Cimilluca, Jonathan D. Rockoff and Ian Walker
LONDON-- Pfizer Inc. confirmed Monday that it made a renewed approach to AstraZeneca PLC regarding a takeover
valued at nearly $100 billion, but the U.K.-listed pharmaceutical firm had declined to engage in talks.
The U.S. drug giant added that it is currently considering its options.
Pfizer said it had originally approached AstraZeneca in January about a possible merger of the two companies and
they held "high-level" talks, but these were discontinued on Jan. 14. Pfizer said it made its second approach on April
Pfizer's previous proposal made to the board of AstraZeneca on Jan. 5 included a combination of cash and shares in
the combined entity, which represented an indicative value of GBP46.61($76.62) per AstraZeneca share and a premium of
30% to AstraZeneca's closing share price of GBP35.86 on Jan. 3.
The indicative price would value AstraZeneca at about GBP58.73 billion, or $98.68 billion.
In response, AstraZeneca said in a statement Monday that the proposal "significantly undervalued AstraZeneca and
Pfizer said that if the deal goes ahead the two companies would be combined under a new U.K.-incorporated holding
company, with management in both the U.S. and U.K. It would maintain its head office in New York and list its shares on
the New York Stock Exchange.
"We have great respect for AstraZeneca and its proud heritage as an innovation-driven biopharmaceutical business
with a rich science-based foundation in both the United Kingdom and Sweden," said Pfizer Chief Executive Ian Reed. "In
addition, the United Kingdom has created attractive incentives for companies to manufacture products and maintain and
protect intellectual property, and we have seen that capital and jobs have followed these types of incentives."
"The combination of Pfizer and AstraZeneca could further enhance the ability to create value for shareholders of
both companies and bring an expanded portfolio of important treatments to patients," Mr. Reed added.
The Wall Street Journal reported earlier that Pfizer plans to pursue a bid for AstraZeneca, citing people familiar
with the matter, eyeing a tie-up that would create a pharmaceutical giant and fuel an already booming year for merger-
and-acquisition activity, particularly in health care.
A pairing of Pfizer and AstraZeneca would create a company with drugs treating most of the major maladies,
including diabetes, heart disease and rheumatoid arthritis. It would combine Pfizer's targeted cancer therapies, such as
Xalkori treating a form of lung cancer, with AstraZeneca's promising drug that aims to attack cancer using the body's
immune system. The industry considers such immunotherapies to be the next wave of lucrative cancer treatments.
Pfizer's interest comes during a rush of deal making, particularly in health care. Last week, announced deal volume
world-wide crossed $1 trillion for this year. That made this the fourth-quickest year to cross the trillion-dollar mark
and the fastest since 2007, according to data provider Dealogic.
Just last week, Valeant Pharmaceuticals International Inc. announced its offer to buy rival Allergan Inc. for
nearly $46 billion, while Novartis AG sealed more than $20 billion in deals to sell and exchange businesses with
GlaxoSmithKline PLC and Eli Lilly & Co.
Write to Ian Walker at email@example.com, Dana Cimilluca at firstname.lastname@example.org and Jonathan D. Rockoff at
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