AstraZeneca rejects Pfizer’s final takeover offer

AstraZeneca's board of directors has confirmed its rejection of an increased takeover bid from US pharmaceuticals giant Pfizer.

The new bid, which was described by Pfizer as a final offer, valued AstraZeneca at 55 pounds per share, with an increased cash consideration of 11.3 billion pounds. In total, the transaction would have been worth around 69 billion pounds.

Pfizer has made considerable efforts in the last fortnight to convince AstraZeneca's management to enter into discussions, writing to prime minister David Cameron to outline the business benefits and investment opportunities associated with such an alliance.

However, AstraZeneca's board considers the new deal to still undervalue the company, as it believes its growth prospects are extremely strong and that any takeover would potentially undermine its future expansion plans and research activities.

Leif Johansson, the company's chairman, said: "AstraZeneca has created a culture of innovation, with science at the heart of its operations, which will continue to create significant value for patients, shareholders and all stakeholders of AstraZeneca."