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Tuesday, 29 April 2014 00:05 - - {{hitsCtrl.values.hits}}
Pfizer said on Monday it made a 58.8 billion pound ($ 98.9 billion) bid approach to AstraZeneca in January and had contacted its British rival again on 26 April seeking further discussions about a takeover.
AstraZeneca shares jumped 15% in early trade.
The cash and shares takeover, if it happens, would be the biggest-ever foreign takeover of a British company and one of the largest-ever pharmaceuticals deals.
The renewed approach comes amid a wave of mergers and acquisitions in the sector, as the industry restructures in the face of healthcare spending cuts and cheap generic competition.
In a statement to the London stock market, Pfizer said AstraZeneca had declined to engage in discussions on both occasions and the US group said it was now considering its options.
Pfizer’s original proposal, made to the board of AstraZeneca on 5 January, included a combination of cash and shares and would have valued AstraZeneca shares at 46.61 pounds each - a premium of around 30% at the time.
Pfizer said it was now considering a possible transaction in which AstraZeneca shareholders would again receive a significant premium above the value of their shares on 17 April, before takeover rumours started.
Citi analyst Andrew Baum said he believed there was now a 90% chance that Pfizer would acquire AstraZeneca for at least around 49 pounds a share.
Shares in the British group shot up to 46.54 pounds by 0805 GMT on Monday, after touching an all-time high of 47.14.
Given that Pfizer is likely to have to offer more this time, due to a run-up in AstraZeneca shares since January, the final value of any deal could be above $ 100 billion.
An AstraZeneca spokeswoman said the company had no immediate comment on the Pfizer statement, adding the company would be considering its response.
Under British takeover rules, Pfizer has until 26 May to announce a firm intention to make an offer for AstraZeneca or back away.
Pfizer has a long track record of making major acquisitions, with the $ 68 billion purchase of Wyeth in 2009 its last major deal, after earlier acquisitions of Pharmacia and Warner Lambert.
