LONDON — AstraZeneca rejected Pfizer's $106 billion bid for the company Friday morning.
"The financial and other terms described in the proposal are inadequate, substantially undervalue AstraZeneca and are not a basis on which to engage with Pfizer" the company stated. "The large proportion of the consideration payable in Pfizer shares and the tax-driven inversion structure remain unchanged. Accordingly, the board has rejected the proposal."
“AstraZeneca continues to invest significantly in research, development and manufacturing in the United Kingdom, Sweden and the United States," said Leif Johansson, AstraZeneca chairman. "We are showing strong momentum as an independent company, in particular with our exciting, rapidly progressing pipeline, which the board believes will deliver significant value for shareholders. Pfizer’s proposal would dramatically dilute AstraZeneca shareholders’ exposure to our unique pipeline and would create risks around its delivery."