Tomahawk, WI 08/26/2014 (Basicsmedia) – AstraZeneca plc (ADR) (NYSE:AZN) shares continue to surge in the market after news emerged that Pfizer Inc. (NYSE:PFE) may table another takeover bid with the three-month ban period that prevented the same under U.K. Laws coming to a close according to CNBC’s correspondent, Catherine Boyle.
Pfizer Inc. (NYSE:PFE) initial bid of £69.4 billion was rejected three months ago, amidst parliamentary committees scrutinizing the effects of a potential merger, especially on its possible impact on the future of science and technology in Britain. Another concern at the moment is the fact that AstraZeneca management is the only one mandated to re-engage in private negotiations with Pfizer, and not the other way around. Another public offer can only be made’ after November 26; six months after the first takeover-bid was rejected.
“AstraZeneca can invite Pfizer Inc. (NYSE:PFE) to the table; the noises am hearing out of them suggest that’s pretty unlikely. Management seems pretty much determined to go alone,” said CNBC’s correspondent, Catherine Boyle
Pfizer is pursuing AstraZeneca plc (ADR) (NYSE:AZN) as one of the ways of escaping the huge tax regime in the U.S by setting its base in the U.K. in a process referred to as an inversion. Boyle believes it is unlikely that Pfizer will be successful this time around considering AstraZeneca remains confident of reporting favorable results with its new drugs in trials, in the coming months.
With a pipeline of new drugs that should have the ability of commanding impressive sales in the market, Boyle believes AstraZeneca may opt to go all the way alone as Pfizer may not add much value going forward. AstraZeneca plc (ADR) (NYSE:AZN), on the other hand, according to Boyle may only tolerate Pfizer advances if it comes with a much greater bid than the earlier rejected £69.4 billion.
“Pfizer Inc. (NYSE:PFE) can also make a private bid. […] That’s got to be one offer at some stage in the next three months and they will probably have to make pretty substantial much larger than their most recent £55 per share bid but it looks as though as Astra said last time it will need to be £59 per share,” said Boyle.