GSK CEO downplays suggestion of 'white knight' bid for AstraZeneca
GlaxoSmithKline (GSK) chief executive Andrew Witty has downplayed suggestions that the FTSE-100 pharmaceuticals group should make a “white knight” offer for AstraZeneca, The Guardian reported. The report cited Witty as saying yesterday (30 April) that GSK was concentrating on its asset swap deal with Switzerland-based rival Novartis.
Witty previously said that companies can be left with unwanted assets after “mega deals,” the item noted.
Separately, the Financial Times reported that some of AstraZeneca’s biggest shareholders are willing to sell if the price is right. Some large shareholders indicated that they would back a deal if listed New York City-based rival Pfizer increased its GBP 60bn (EUR 73bn) takeover bid.
A top 10 shareholder quoted in the Financial Times report said they are not “protectionist,” and that price and commercial logic would be the criteria on which a deal is judged.
One top 10 shareholder quoted in the report said Pfizer’s proposal could yield “huge synergies,” but added that an improved offer would be welcome.
The Financial Times report also quoted AstraZeneca chairman Leif Johansson as saying that he remains opposed to Pfizer’s informal GBP 46.61 per share bid. Johansson said the offer significantly undervalues AstraZeneca, and questioned whether big mergers have been useful in marketing new drugs. The chairman added that AstraZeneca has sufficient scale to create value independently.
Separately, The Times reported that UK politicians said they plan to scrutinize the proposed deal closely. The report quoted a member of a parliamentary select committee, Ann McKechin, who said the size of the proposed deal means that the effects on employees and the UK’s wider interests must be considered alongside the interests of shareholders.
AstraZeneca’s share price closed 31.5p up at 4664p in London yesterday, giving the company a market capitalisation of GBP 58.85bn.
Source The Guardian, Financial Times, The Times