Pfizer Calls It Quits On Bid To Acquire AstraZeneca

Discussion in 'Stock Market Forum' started by PaulSchinider, May 27, 2014.

  1. PaulSchinider

    PaulSchinider Well-Known Member

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    Pfizer said that it will not be raising its final take-it-or-leave-it offer to acquire AstraZeneca, and the latter’s share price is down about 1.3% during pre-market trading today

    Pfizer Inc. (PFE) announced yesterday that it has abandoned its efforts to acquire London-based AstraZeneca plc (AZN) for $117 billion after a Monday 5:00 PM BST deadline, the official deadline for the latter company to make a decision, expired. Pfizer had said the offer it made on May 18 was final, and that the company will not be raising its bid. Shares of AstraZeneca are down about 1.3% in pre-market trading today as a result.

    Pfizer’s decision came Monday, when US markets had been closed due to the Memorial Day holiday. The decision was widely anticipated, however, as AstraZeneca had rejected a final take-it-or-leave-it offer that had valued AstraZeneca at £55 per share.

    British takeover rules state that AstraZeneca can get in touch with the New York City-based company in three months with a proposed sale offer. This may allow Pfizer to engage in takeover talks once again. In the event that AstraZeneca does not approach the company with a takeover offer, Pfizer will have to wait six months.

     
  2. Abqu

    Abqu Well-Known Member

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    AZN should have taken the deal, in my opinion. But then, PFE would have become a giant. Would have been interesting to see what came of that. Oh well.
     
  3. PaulSchinider

    PaulSchinider Well-Known Member

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    Yes now we will see what comes next they take deal or not ???
     
  4. May102014

    May102014 Well-Known Member

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    I can't see Pfizer taking the bait again. AstraZeneca is a hard negotiator and Pfizer couldn't present a deal for them to take. I read about this and I think it's good for Pfizer to go the other way. AstraZeneca's share is alluring, but I don't think such trends seen on the stock market will benefit Pfizer in the long run if such a takeover comes to fruition. Pfizer still has other competitors to tend with and only for a short period of time will they enjoy a bump in shares if they had of taken over AstraZeneca.
     
  5. mark973

    mark973 Well-Known Member

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    It would have been interesting to see what would have happened if they took that deal. I guess we'll never know. We'll just have to wait and see what deal they will take.
     
  6. richc3

    richc3 Senior Investor

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    That's certainly a bit of egg on your face.
    I have to say the whole drama was interesting to watch unfold. I'm a sucker for failed bids, although I did love the AT&T and T-Mobile attempt.
     
  7. mark973

    mark973 Well-Known Member

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    What was the AT&T and T-Mobile attempt?
     
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