AstraZeneca set for takeover offer from US giant Pfizer
DRUG development group AstraZeneca – which has manufacturing and research operations in Cheshire – is facing a £50bn-plus takeover bid from US rival Pfizer.
AZ has so far shunned Pfiizer’s approach. The American company has indicated it would offer cash and shares worth 4661p per share, a significant premium of around 30% to the price before it emerged the stock was in play.
Pfizer said in a statement it was hopeful a deal could be agreed, arguing too that the combination was a “highly compelling opportunity” for investors of the Anglo-Swedish company.
If the deal does go ahead the enlarged group would be listed in New York rather than London, but would have management in both the UK and US. It would also be the biggest-ever takeover of a UK company by a foreign buyer.
Shares in AZ closed at 4080 on Friday, valuing it at £51.5bn.
In its response to Pfizer, AstraZeneca said that its board feels the proposed deal – 70% shares and 30% in cash -was not sufficient to warrant further engagement.
“Accordingly, the board remains confident in the ongoing execution of AstraZeneca’s strategy as an independent company and that its successful delivery will create significant value for shareholders.”
AstraZenceca, which is set to move the bulk of its R&D operations from Alderley Park, Cheshire to a new facility in Cambridgeshire, has yet to respond to the Pfizer statement.
Alderley Park currently employs 2,900 scientists, while the company has manufacturing sites in nearby Macclesfield employing hundreds more staff.
Alderley Park was originally the headquarters of ICI’s pharmaceutical division, opened in the 1950s. It was recently acquired by Manchester Science Parks – which is 50% owned by property company Bruntwood.
