Britain’s AstraZeneca has rejected the “final” bid from Pfizer, as it “undervalues the company and its attractive prospects.”
The US drugs giant already raised its takeover offer to 55 pounds a share, or around 70 billion pounds in total.
However, AstraZeneca Chief Executive Leif Johansson said Pfizer’s proposal had been “fundamentally driven” by the business financial benefits.
“Pfizer has failed to make a compelling strategic, business or value case,” he explained.
Pfizer prompted fears as the company’s pursuit may affect AstraZeneca’s drug research.
Takeover tax rules
AstraZeneca’s decision to reject the offer damages Pfizer’s plan to create the world’s biggest pharmaceuticals group.
Pfizer wants the planned drug firm, with headquarters in the US but a tax base in Britain for tax purposes. That strategy is called “tax inversion,” wherein Pfizer would pay UK corporate tax rate of only 20% instead of 35% applied in the US.
But that tactic is proven controversial, which would lead to job cuts. AstraZeneca has around 6,700 employees in the UK.