By Ian Walker, Dana Cimilluca and Jonathan D. Rockoff
LONDON-- Pfizer Inc. confirmed Monday that it made a renewed
approach to AstraZeneca PLC regarding a takeover valued at nearly
$100 billion, but the U.K.-listed pharmaceutical firm had declined
to engage in talks.
The U.S. drug giant added that it is currently considering its
options.
Pfizer said it had originally approached AstraZeneca in January
about a possible merger of the two companies and they held
"high-level" talks, but these were discontinued on Jan. 14. Pfizer
said it made its second approach on April 26.
Pfizer's previous proposal made to the board of AstraZeneca on
Jan. 5 included a combination of cash and shares in the combined
entity, which represented an indicative value of GBP46.61 ($76.62)
per AstraZeneca share and a premium of 30% to AstraZeneca's closing
share price of GBP35.86 on Jan. 3.
The indicative price would value AstraZeneca at about GBP58.73
billion, or $98.68 billion.
Pfizer said that if the deal goes ahead the two companies would
be combined under a new U.K.-incorporated holding company, with
management in both the U.S. and U.K. It would maintain its head
office in New York and list its shares on the New York Stock
Exchange.
"We have great respect for AstraZeneca and its proud heritage as
an innovation-driven biopharmaceutical business with a rich
science-based foundation in both the United Kingdom and Sweden,"
said Pfizer Chief Executive Ian Reed. "In addition, the United
Kingdom has created attractive incentives for companies to
manufacture products and maintain and protect intellectual
property, and we have seen that capital and jobs have followed
these types of incentives."
"The combination of Pfizer and AstraZeneca could further enhance
the ability to create value for shareholders of both companies and
bring an expanded portfolio of important treatments to patients,"
Mr. Reed added.
The Wall Street Journal reported earlier that Pfizer plans to
pursue a bid for AstraZeneca, citing people familiar with the
matter, eyeing a tie-up that would create a pharmaceutical giant
and fuel an already booming year for merger-and-acquisition
activity, particularly in health care.
A pairing of Pfizer and AstraZeneca would create a company with
drugs treating most of the major maladies, including diabetes,
heart disease and rheumatoid arthritis. It would combine Pfizer's
targeted cancer therapies, such as Xalkori treating a form of lung
cancer, with AstraZeneca's promising drug that aims to attack
cancer using the body's immune system. The industry considers such
immunotherapies to be the next wave of lucrative cancer
treatments.
Pfizer's interest comes during a rush of deal making,
particularly in health care. Last week, announced deal volume
world-wide crossed $1 trillion for this year. That made this the
fourth-quickest year to cross the trillion-dollar mark and the
fastest since 2007, according to data provider Dealogic.
Just last week, Valeant Pharmaceuticals International Inc.
announced its offer to buy rival Allergan Inc. for nearly $46
billion, while Novartis AG sealed more than $20 billion in deals to
sell and exchange businesses with GlaxoSmithKline PLC and Eli Lilly
& Co.
Write to Ian Walker at ian.walker@wsj.com, Dana Cimilluca at
dana.cimilluca@wsj.com and Jonathan D. Rockoff at
jonathan.rockoff@wsj.com
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