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Pfizer drops bid to acquire AstraZeneca
May 27th, 2014
NEW YORK – Pfizer Inc. has decided to end its pursuit of U.K.-based drug maker AstraZeneca plc.
In a statement on Monday, Pfizer said that it "does not intend to make an offer for AstraZeneca" after AstraZeneca's board last week rejected its final offer, a deal valued at about $119 billion.
"We continue to believe that our final proposal was compelling and represented full value for AstraZeneca, based on the information that was available to us," Ian Read, chairman and chief executive officer of Pfizer, said in a statement. "As we said from the start, the pursuit of this transaction was a potential enhancement to our existing strategy. We will continue our focus on the execution of our plans, bringing forth new treatments to meet patients' needs and remaining responsible stewards of our shareholders' capital."
Pfizer confirmed in late April that it had approached AstraZeneca about a potential merger. Pfizer said that in early January it made an offer that included a combination of cash and shares in the combined entity and represented a value of $76.62 per AstraZeneca share, a proposal valued at nearly $100 billion.
However, AstraZeneca said both of Pfizer's acquisition offers significantly undervalued the pharmaceutical company. Last week, Pfizer it won't make a hostile offer directly to AstraZeneca shareholders.