This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

AstraZeneca Under Fire, Pfizer Clarifies Scope to Tweak Bid

LONDON (The Deal) -- The board of AstraZeneca (AZN - Get Report) on Tuesday, May 20, sustained new shareholder criticism for its decision to reject a £69.4 billion ($117 billion) bid from Pfizer  (PFE - Get Report) as the New York bidder pointed to limited wriggle room in a clarification requested by the Takeover Panel.

AstraZeneca on Monday batted away a thrice-sweetened offer worth 5,500 pence per share, breaking down into 1.747 Pfizer shares plus 2,476 pence in cash. The London group's board argued that the bid is risky and undervalues its pipeline of drugs under development. Unusually, the board also stipulated on Monday that it was looking for a price of at least 5,885 pence per share.

Schroders, a top 20 AstraZeneca shareholder with a roughly 2% stake, became at least the third institution to express "disappointment" following complaints from AXA and Jupiter Fund Management on Monday.

"Schroders notes with disappointment the quick rejection by the AstraZeneca board of the latest offer from Pfizer and the decision of the Pfizer board to draw a premature end to these negotiations by calling their latest proposal final," said Schroders' prime U.K. equity manager Sue Noffke in a statement. "As long term shareholders, we are strong believers in AstraZeneca and the potential for its innovative growth pipeline, however, given the increase in the offer we would encourage the AstraZeneca management to recommence their engagement with Pfizer, and subsequently their shareholders."

Pfizer CEO Ian Read on Monday called on AstraZeneca shareholders to lobby the British company to change its position but it's doubtful whether they can apply sufficient pressure on chairman Leif Johansson and CEO Pascal Soriot. Some, including Neil Woodford, who recently launched Woodford Investment Management, have backed the AstraZeneca board, and Aberdeen Asset Management plc on Monday said the sweetened bid still fell short.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AZN $70.07 0.00%
PFE $34.53 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs