AstraZeneca rejects new Pfizer offer

ASTRAZENECA’s board has rejected an improved offer from rival drug company Pfizer.

On Friday morning Pfizer increased its offer from £46.60 a share to £50, valuing the group at £63bn.

But AstraZeneca later said the offer “substantially undervalued” the group.

It said: “The financial and other terms described in the proposal are inadequate, substantially undervalue AstraZeneca and are not a basis on which to engage with Pfizer.

“The large proportion of the consideration payable in Pfizer shares and the tax-driven inversion structure remain unchanged. Accordingly, the board has rejected the proposal.”

Pfizer also wrote an open letter to the prime minister setting out its commitment to the UK. It said it would establish the combined company’s corporate and tax residence in the UK, and retain “substantial commercial manufacturing facilities in Macclesfield”.