Pfizer’s Unsuccessful Takeover of Astrazeneca

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Corporate Finance

The case is the unsuccessful takeover of AstraZeneca by Pfizer which unfolded earlier this year.  News archives will be a main source of material for the case but you should also use your course notes when evaluating news items and to provide a background for your analysis.

If you cite works in the report they must be included in a reference section.  If you use works but do not cite them you can include them in a bibliography.

Pfizer’s unsuccessful takeover of AstraZeneca

For an overview of the case please read the timeline available at

http://www.theguardian.com/business/2014/may/14/pfizer-takeover-approach-astrazeneca-timeline

This case illustrates how a takeover unfolds when the target’s management are not in favour of the takeover.  Pfizer keep raising their offer price whilst AstraZeneca provide a defence by publishing a strategy document.

Following the Kraft-Cadbury case and, in particular, the loss of jobs which had been promised as secure, the UK government intervenes and the takeover becomes a potential vote issue.

One main motive for Pfizer’s bid appears to be a desire to move to the UK to lower its tax bill.

The takeover is unsuccessful but the media suggests that when the regulatory deadline (late November) passes Pfizer will launch another bid for AstraZeneca.

Required

Discuss the reasons for the UK intervening in the bid process and explain why Kraft-Cadbury has influenced the government’s stance on mergers and acquisitions.

The following may be of help but do search for more.

http://www.bbc.co.uk/news/business-27187215

http://www.bbc.co.uk/news/business-27258143

http://www.bbc.co.uk/news/business-27185027

http://www.bbc.co.uk/news/business-27274954

http://www.publications.parliament.uk/pa/cm200910/cmselect/cmbis/234/234.pdf

http://www.ft.com/cms/s/0/f7f00654-39ca-11e4-83c4-00144feabdc0.html#axzz3DYItqmrh

http://www.bbc.co.uk/news/business-27466278

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