22nd Apr 2014 05:27
LONDON (Alliance News) - US pharmaceutical giant Pfizer Inc. offered to acquire rival UK drugmaker AstraZeneca PLC for USD101 billion, or 60 billion pounds, according to media reports.
The Sunday Times reported the takeover news citing some senior investment bankers and industry sources. The report indicated about informal conversations between both the companies about a possible merger. However, no talks are currently under way after AstraZeneca resisted the approach, the report said.
Nonetheless, Pfizer could return with a better offer for AstraZeneca as it sits on a huge cash hoard in overseas subsidiaries that it can utilize for a major acquisition. Pfizer, the maker of erectile dysfunction drug Viagra, would be heavily taxed if it repatriates the USD70 billion fund to the US
With both companies facing problems on future growth as they deal with expiration of patents, a merger could be a solution.
AstraZeneca has a market valuation of about USD80 billion while Pfizer boasts of a market capitalization of around USD193 billion.
Copyright RTT News/dpa-AFX
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