AstraZeneca's Board Feeling Pressure From Stockholders Following Pfizer Bid Rejection
AstraZeneca's board is now receiving pressure from large shareholders, including Schroders PLC, Jupiter Fund Management, and Legal & General General Group., to reconsider the offer. The Street appears to be reacting favorably to this encouragement to reach a deal, as shares of AstraZeneca were trading up over three percent earlier in Wednesday's session.
The New York Times has reported that, due to British Takeover Panel rules, the two companies may have to step back from the table for a "three-month cooling off period."
Pfizer has said if AstraZeneca recommends the proposal on the table, then it has the right to raise its offer. According to the New York Times, however, "the implied Pfizer maneuver probably would not work." This is due to British Takeover Panel rules which disallow any sort of implied assurance, whether it be public or private, that there will bid higher than one already declared final.
AstraZeneca has said it is seeking a bid closer to $127 billion or around $99 per share. To make a deal of that caliber worth the price, AstraZeneca would have to reach its $45 billion revenue forecasts for 2023 while also increasing its margins, according to the New York Times.
Shares of AstraZeneca are currently trading around $73.56, up 1.36 percent.
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