As the deadline to takeover AstraZeneca come closer, Pfizer decided to just walk away without a change of mind this Monday. This decision is the end of an entire month of fighting between Pfizer and AstraZeneca on the price of the buyout, which flashed political concerns on both sides over jobs and corporate taxes.
For now, British rules are in place that requires a cooling off period. AstraZeneca won’t be able to get in touch or communicate with Pfizer until the 3 months from now.
The decision to walk away happened around 3pm this Monday which was two hours before the deadline for the company to make an offer or just abandon the attempt to buyout AstraZeneca under the takeover rules of UK. This decision though was already expected by many when AstraZeneca refused Pfizer firm offer of 55 pounds per share.
In a short press release made by Pfizer, the company made it clear that with AstraZeneca’s rejection of its last offer, it doesn’t have any intention to make another proposal. Also, Pfizer said that it will continue believing that its last proposal was convincing enough and that it represented the full value of AstraZeneca according to the information that the company studied. These words came directly from the Chairman and Chief Executive of Pfizer, Ian Read.
What will happen in the next coming weeks or months depend a lot on how AstraZeneca’s share price will go, whether it goes up or down and how it can be difficult for the company’s shareholders to request for a revisit of the offer from Pfizer. The biggest shareholder of AstraZeneca supported the rejection of the company of Pfizer’s offer, but he’s open to talking about the deal again in the future.