AstraZeneca rejects Pfizer's final £69 billion takeover bid

The British pharmaceutical company said that the deal will bring “uncertainty and risk” for its shareholders.

13:35 19 May 2014

Pfizer has increased its offer to take over British pharmaceutical company AstraZeneca and placed its take-it-or-leave-it £69 billion takeover bid on the table. However, the British company rejected the offer saying that it will bring “uncertainty and risk” for its shareholders. It added that the offer “undervalues the company and its attraction prospects.” 

 

Leif Johansson, the chairman of AstraZeneca, said: “Pfizer's approach throughout its pursuit of AstraZeneca appears to have been fundamentally driven by the corporate financial benefits to its shareholders of cost savings and tax minimisation.”

 

Pfizer’s plan to take over AstraZeneca was strongly opposed by UK politicians and scientists fearing that it could lead to cuts in jobs. 

 

Meanwhile, Ian Read, chairman and CEO of Pfizer, said: “We have tried repeatedly to engage in a constructive process with AstraZeneca to explore a combination of our two companies."

 

Pfizer added it sent a letter to AstraZeneca’s chairman on Friday about the company’s new proposal to buy its share for £53.50 each – an offer that AstraZeneca immediately rejected saying that its board believed it was too low.