Pfizer ups the price

In its continued quest to buy UK firm AstraZeneca, Pfizer has upped the offer price and appealed to the prime minister to ease public concerns.

In further attempts to secure the purchase of AstraZeneca, Pfizer has raised its buying price, offering £50 per share in an attempt to woo the UK firm.

Following AstraZeneca’s rejection of Pfizer’s initial offer on the grounds that it “significantly undervalued” the firm, the US heavy weight has now raised the price, valuing the company at £63bn.

Pfizer has also appealed to prime minister David Cameron over the bid, vowing to base 20% of the combined companies’ R&D workforce in the UK if the purchase proceeds. Pfizer has also promised to retain AstraZeneca’s Macclesfield manufacturing site and continue with the company’s plans to establish a new R&D base in Cambridge.

Ian Read, chairman and chief executive of Pfizer, said: “We believe our proposal is responsive to the views of AstraZeneca shareholders and provides a sound basis on which to arrive at recommendable terms for the combination of our two companies.”

Read also confirmed that, if the company secures ownership of AstraZeneca, Pfizer plans to establish a corporate and tax residence in the UK and a new headquarters in Europe.

The new offer is now being reviewed by the board at AstraZeneca.