AZ falls after rejecting final Pfizer bid

AstraZeneca plc (LSE:AZN; NYSE:AZN) fell $9.64 (12%) to $70.64 in New York and lost 536p (11%) to 4,287.50p in London on Monday after rejecting an increased -- and final -- bid from Pfizer Inc. (NYSE:PFE) to acquire AstraZeneca for about L69.1 billion ($116.3 billion) in cash and stock. The offer was about a 15% increase to the L62.9 billion ($105.9 billion) bid that AstraZeneca rejected on May 2. In rejecting the new bid, AstraZeneca again cited an "inadequate" price and that the majority of the offer is in Pfizer stock. Based on Pfizer's close of $29.12 on Friday, before the final bid was made public, about 55% of the pharma's latest offer would have been in stock.

Under U.K. takeover rules, Pfizer 's proposal will expire on May 26 unless AZ extends the negotiation period. Pfizer said it will not make a hostile offer directly to AZ shareholders, though Pfizer's financial results earlier this month revealed it needs AZ's assets to create a growth story (see BioCentury, May 12). ...