GSK rumoured to be potential target for Pfizer
Pfizer, the New York City-headquartered listed biopharma group, is rumoured to be a possible bidder for the UK-listed rival GlaxoSmithKline, The Daily Express reported. The market report did not cite a source for the information but noted that Pfizer attempted in vain to acquire the UK-listed AstraZeneca earlier in the year.
The Guardian’s Market Forces Live blog said Berenberg analysts pointed out that Pfizer had been willing to pay USD 120bn to acquire AstraZeneca, and GSK has a market capitalisation of USD 117bn following a drop in its share price. Pfizer’s market cap is approximately USD 183bn, the analysts noted. They added that Pfizer would need to offer a premium which, based on similar terms to Pfizer’s last AstraZeneca offer, would mean a bid of around USD 164bn.
While the deal may be too rich for Pfizer, which would likely need to come up with USD 74bn cash, it could prove very beneficial, the analysts said, pointing in particular to GSK’s relatively low tax rate.
Source Daily Express, The Guardian