Pfizer May Return for Astra, Which May Target Actelion: Citi
2014-07-29 07:13:51.858 GMT
By Allison Connolly
July 29 (Bloomberg) -- Astra is still most attractive
target for Pfizer while Astra may pursue near-term acquisitions
such as Actelion, Citi says in note today.
* 25% chance of Pfizer returning for Astra after Aug. 26; will
need to offer at least >$60 to secure deal
* Still sees Dec. approach more likely and assumes
inversion window remains open for up to 18 months
* Sees asset swaps or JV around oncology business unlikely
to deter Pfizer
* Citi says Astra will pursue more near-term EPS accretive
deals, including potentially Actelion, to boost EPS, div.
cover
* A potential Actelion acquisition at ~$16b (25% premium)
could be up to 11% accretive to 2017 trough EPS; would
broaden core respiratory portfolio, improve div. cover
* Astra has ample financing given its current ~$3b-4b net
debt
* Maintains buy rating for Astra; lifts target price to 5,400p
vs 4,900p
* NOTE: Astra reports 2Q results on July 31 at 7am U.K.
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To contact the reporter on this story:
Allison Connolly in London at +44-20-3525-7043 or
aconnolly4@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Gaurav Panchal
2014-07-29 07:13:51.858 GMT
By Allison Connolly
July 29 (Bloomberg) -- Astra is still most attractive
target for Pfizer while Astra may pursue near-term acquisitions
such as Actelion, Citi says in note today.
* 25% chance of Pfizer returning for Astra after Aug. 26; will
need to offer at least >$60 to secure deal
* Still sees Dec. approach more likely and assumes
inversion window remains open for up to 18 months
* Sees asset swaps or JV around oncology business unlikely
to deter Pfizer
* Citi says Astra will pursue more near-term EPS accretive
deals, including potentially Actelion, to boost EPS, div.
cover
* A potential Actelion acquisition at ~$16b (25% premium)
could be up to 11% accretive to 2017 trough EPS; would
broaden core respiratory portfolio, improve div. cover
* Astra has ample financing given its current ~$3b-4b net
debt
* Maintains buy rating for Astra; lifts target price to 5,400p
vs 4,900p
* NOTE: Astra reports 2Q results on July 31 at 7am U.K.
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Allison Connolly in London at +44-20-3525-7043 or
aconnolly4@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Gaurav Panchal