Pfizer engages AstraZeneca with raised $106 billion offer

02/05/2014 - 7:38

LONDON (Reuters) - U.S. drugmaker Pfizer has raised its offer for AstraZeneca to 63 billion pounds ($106 billion), it said on Friday, adding that the British drugmaker was reviewing the proposal.

The 50 pounds ($84.47) a share indicative offer comes after ASTRAZENECA (AZN.LO)had rebuffed a proposal valuing it at $98.9 billion, or 46.61 pounds per share.

PFIZER (PFE.NY)s pursuit of AstraZeneca to create the world's biggest pharmaceuticals company comes amid a wave of deal-making in the healthcare sector.

Buying AstraZeneca would boost Pfizer's pipeline of cancer drugs and create significant cost and tax savings.

But the takeover, which would be the largest acquisition of British company by a foreign business, has stirred political controversy in Britain.

In an attempt to smooth relations with the government, Pfizer Chief Executive Ian Read wrote to Prime Minister David Cameron, promising to complete a substantial new research center planned by AstraZeneca in Cambridge and retain a manufacturing plant in Macclesfield.

Read also said that 20 percent of the enlarged group's workforce would be in Britain.

Pfizer said AstraZeneca had indicated it would respond after its board had reviewed the proposal, which would see shareholders receiving, for each AstraZeneca share, 1.845 shares in the combined company and 15.98 pounds in cash. ($1 = 0.5919 British Pounds)

(Reporting by Ben Hirschler; Editing by David Goodman)