Confirming a takeover approach from the US drugs giant, Anglo-Swedish pharma major AstraZeneca (LSE: AZN) issued its own statement, arguing that Pfizer's (NYSE: PFE) suggested offer "very significantly" undervalued the company and its prospects. AstraZeneca urged its shareholders to take no action and said it remained confident of its independent strategy.
On April 26, 2014, Ian Read, chairman and chief executive of Pfizer, contacted Leif Johansson, the chairman of AstraZeneca for the first time since January 2014. In this discussion, the Mr Read did not make a specific proposal regarding an offer to acquire AstraZeneca. The AstraZeneca board considered this request and concluded that, absent a specific and attractive proposal, it was not appropriate to engage in discussions with Pfizer.
Earlier today, Pfizer publicly announced that bid talks with AstraZeneca had taken place in January with an indicative value of £46.62 ($76.62) a share (see separate story). The UK-headquartered company explained that the proposal comprised £13.98 in cash (30%) and 1.758 Pfizer shares (70%) per AstraZeneca share, representing a value of £46.61 per AstraZeneca share, based on the closing price of Pfizer shares of $30.52 on January 3, 2014. The Proposal also involved a new US listed and headquartered holding company.
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