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AZ gains on renewed Pfizer interest

April 29, 2014 12:30 AM UTC

AstraZeneca plc (LSE:AZN; NYSE:AZN) gained 586.5p (14%) to 4,666.5p in London and $8.35 (12%) to $77.01 in New York on Monday after the pharma and Pfizer Inc. (NYSE:PFE) said Pfizer revived its interest in acquiring AZ. The companies also confirmed last week's media reports that AZ rejected a January takeout from Pfizer for about L58.6 billion ($96.2 billion) in cash and stock. AstraZeneca said its board rejected the bid because the proposal "very significantly undervalued" AZ and because about 70% of the offer was in stock. The companies ended discussions in January.

However, Pfizer last week attempted to renew discussions of a potential acquisition with AstraZeneca, which said Pfizer did not make a specific proposal. Pfizer said it renewed discussions "in light of recent market developments." The company said the addition of AZ would allow Pfizer to "maintain the flexibility for the potential future separation of our businesses." Pfizer also highlighted AZ's cancer, cardiovascular and diabetes portfolio as being complementary with its marketed drugs. ...