Pfizer to Make Second Bid at AstraZeneca, Ups the Price

With over $130B in potential pharmaceutical deals over the last few weeks, Pfizer, Inc. (PFE) has made a second attempt at purchasing its U.K. rival AstraZeneca, PLC (AZN) with an even better deal.  This more lucrative offer is an attempt to avoid a hostile takeover which would necessitate a deal directly with AstraZeneca's shareholders. The value of the deal would raise the cash portion while increasing the value of AZN stock to around 50 pounds per share.  According to Bloomberg's David Welch, "Pfizer would prefer a friendly deal since its unsolicited overture already has attracted political scrutiny in the U.S. and U.K." British lawmakers have already questioned Pfizer's first bid due to concerns that research and development along with jobs might be slashed due to the merger.

Pfizer's initial bid just north of $100B was turned down by AstraZeneca. AstraZeneca Chairman, Leif Johansson stated that the initial bid undervalued his company.  Pfizer will make its second official bid following Parliament's hearings on the matter.

By: Tommy King

Sources: bloomberg.com