BMO Says Pfizer, Zoetis Exchange Offer Looking More Attractive, Sees Bid at High End of Ratio

With traders waiting on the ratio for the Pfizer

and Zoetis

exchange offer (expected for after the close Wednesday), BMO's Alex Arfaei is commenting. The analyst beileves the offer will probably be towards the upper end of the exchange ratio. He cites action in Zoetis over Monday and Tuesday and VWAP prices for Pfizer. Arfaei sees tendering Pfizer shareholders acquiring Zoetis shares in the range of $29.40 to $29.70, a discount of approximately 5 percent from its current price. Arfaei sees the offer as oversubscribed and suitable for “aggressive investors”. Pfizer is up slightly at last check, while Zoetis is hovering near the 50 day SMA.