Reuters - Video

EDITION: U.S. | U.K. | IN

Video

AZ spurns Pfizer, Bayer/Merck deal nears

Friday, May 02, 2014 - 02:27

May 2- Pfizer ups its offer for AstraZeneca to $106bn in a deal that would create the world's largest pharma - but is promptly rejected. And Bayer is reported to be near to closing a $14bn deal with Merck. Hayley Platt reports.

▲ Hide Transcript

View Transcript

It's already rejected one bid - now UK drugs maker AstraZeneca rejects a second. The improved £63 billion pound offer or £50 a share was made by U.S. rival Pfizer. There's still hope the deal will go ahead - making it the world's biggest pharmaceutical company. It would help boost Pfizer's pipeline of cancer drugs, cut its tax bill and create significant cost savings. But there are still obstacles to be overcome, says BGC's Mike Ingram. SOUNDBITE: Mike Ingram, market strategist, BGC Partners, saying (English): "It's quite likely that Pfizer is going to come back with an improved offer. But at the moment AstraZeneca are not opening the books to Pfizer. So their ability to significantly raise the offer is actually quite constrained at the moment." Pfizer executives, including CEO Ian Read, have been in London on a charm offensive. They're pushing hard to convince the UK government and AstraZeneca shareholders, it's a good deal. It would be the largest foreign takeover of a British company - if it goes ahead. Amongst other assurances, Pfizer will want to show it can be trusted to keep its promises. Critics look back to U.S. based food group Kraft when it took over Cadbury in 2009, and closed one of the chocolate maker's plants after saying it wouldn't. IG's Brenda Kelly says UK politicians will be keeping a close eye on Pfizer. SOUNDBITE: Brenda Kelly, IG, saying (English): "We have seen Pfizer fall back on promises in the past in terms of closing a research centre and of course the MPs have been very concerned as to whether this will have an impact on competition on this particular space but also for the wider economy in terms of job losses." It could also see China intervene. Pfizer and AstraZeneca are already its two biggest pharmaceutical firms. A merger would raise anti-trust issues. China's six-year-old anti-monopoly law is increasingly playing a role in international deals, often forcing painful delays. SOUNDBITE: Mike Ingram, market strategist, BGC Partners, saying (English): "We saw in the case of Glencore Xstrata that China can actually throw a spanner in the works in these kind of deals for quite some time and ultimately they might force some disposal from the combined entity." Pfizer aren't the only U.S. drugmaker in the market for change. Sources tell Reuters that Bayer is close to a deal with Merck to buy its consumer unit for close to $14 billion. No decisions on either deals have been made public yet. But Pfizer is widely expected to make some sort of announcement on Monday to coincide with its first quarter results.

AZ spurns Pfizer, Bayer/Merck deal nears

Friday, May 02, 2014 - 02:27

Top News »

Money »

Finding meaning in the S&P 500 2000 mark Finding meaning in the S&P 500 2000 mark

Mon, Aug 25, 2014 - (2:35)

S&P falls back from record high S&P falls back from record high

Fri, Aug 22, 2014 - (1:35)

S&P 500 closes at new high S&P 500 closes at new high

Thu, Aug 21, 2014 - (1:24)

S&P 500 just shy of record S&P 500 just shy of record

Wed, Aug 20, 2014 - (2:23)

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

Dow back to positive territory for year Dow back to positive territory for year

Wed, Aug 13, 2014 - (2:18)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Images of August Images of August

11:55am EDT - (1:00)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)