AstraZeneca rejects 'final' offer from Pfizer

Pfizer's efforts to merge with British rival AstraZeneca has attracted significant political opposition.

AstraZeneca's board has rejected yet another takeover bid from Pfizer, a move that could lead the U.S. drugmaker to abandon attempts to complete a mega-merger with its British rival.

AstraZeneca said in a statement that Pfizer's latest offer of £55.00 ($95.52) per share undervalues the company, and constituted only a minor improvement over the company's previous offer.

Pfizer (PFE, Fortune 500) said late Sunday that the new bid would be its "final" overture, and that it would not make a hostile bid for AstraZeneca (AZN).

The offer valued AstraZeneca at nearly $120 billion, and was a 45% premium over the company's share price in mid-April.

Shares in the British company plunged nearly 14% to £41.57 in early trading Monday.

AstraZeneca has now rejected four proposals from Pfizer. The company's board said Monday it was convinced that Pfizer's takeover hopes were driven by potential cost savings and tax minimization.

AstraZeneca's board also revealed that it would only consider bids that were worth at least £58.85. Since Pfizer has declared the £55.00 bid to be its "final" offer, it's not clear whether the companies will be able to close the gap.

The potential takeover has attracted significant political attention, including calls in Britain for new powers that would allow the government to prevent takeovers by foreign firms in the interest of national security.

AstraZeneca alone accounts for about 2% of British exports, and the deal would represent the biggest foreign takeover of a British company.

Source: CNN