Will The U.K.'s Business Department Block Pfizer's Bid?

UPDATE: Since the original posting of this note, shares of AstraZeneca have almost fully recovered. Recent Bloomberg news now suggests that the United Kingdom's Business Department is Neutral on the Pfizer deal. Bloomberg on Friday reported that the United Kingdom's Business Department is searching for solutions to block Pfizer's PFE bid for AstraZeneca PLC AZN.

Bloomberg reporter Robert Hutton stated that the U.K.'s Business Department “is looking at how Pfizer Inc.'s proposed takeover of AstraZeneca Plc could be blocked on public interest grounds.”

Bloomberg's source specified that Business Secretary Vince Cable could discuss the case to the European Commission. Another solution includes an amendment to the Enterprise Act, which would widen “public interest” specifically for takeovers.

Shares of AstraZeneca fell more than eight percent to $72.79 Friday morning, but have slightly recovered. The stock is currently trading at $77.40, down 1.7 percent.

Shares of Pfizer are following a more upward parabolic trend on Friday. The stock is down roughly a half of a percent at $29.00.