Pfizer hints at better bid for Britain's AstraZeneca
US drugmaker says increased offerpossible only if the British company agrees to merger talks,with the threat of a hostile bidalready looming
US drugmaker Pfizer hinted yesterday it could raise its US$106 billion offer if AstraZeneca would only engage in talks, as its boss was grilled by British lawmakers on his commitment to British research spending and jobs.
In response, AstraZeneca said it would have to consider a compelling offer but accused Pfizer of an "opportunistic" proposal with a ploy to cut taxes that risked its reputation.
Pascal Soriot, the boss of AstraZeneca, came out fighting after Pfizer chief executive Ian Read made clear the New York-based group would not rule out a hostile bid if Britain's second-biggest drugmaker did not enter merger talks.
Having warned that AstraZeneca could wither without its financial muscle, Pfizer expressed its frustration at being rebuffed, and said that working with the British company's board could help deliver "optimal deal terms" which AstraZeneca could recommend to its shareholders.
Soriot - who came after Read to answer questions from a parliamentary select committee - said Pfizer's proposal risked disrupting its research and development work and delaying life-saving new drugs, as well as undervaluing the business.
"What will we tell the person whose father died from lung cancer because one of our medicines was delayed - and essentially was delayed because in the meantime our two companies were involved in saving tax and saving costs?" he asked lawmakers.
Pfizer's plan to cut its tax bill by redomiciling to Britain if it bought AstraZeneca also posed a reputational risk, Soriot said.
