Major investors were split today over whether AstraZeneca had made the right call by rejecting Pfizer.
Although most agreed the US giant would need to raise its bid above £55 a share, they warned Astra’s refusal to open negotiations could see Pfizer walk away.
One major institutional investor, who said he was “disappointed and surprised” at the rejection, said: “We believed it would be enough for AstraZeneca to at least start engaging with Pfizer, which is something we have told them they should be doing. The latest bid is within shot of being a good price for the company.
“It’s clear that Pfizer does not have bottomless pockets. Its management team told us that they won’t destroy value for their own shareholders.”
Another leading City fund manager said: “There is undoubtedly disappointment out there that both sides have not moved sufficiently forward to try and reach an agreement.”
However, several shareholders were supportive.
“Is it the knockout bid that markets were expecting? I suspect it will fall some way short of that,” said Euan Stirling at Standard Life Investments.
Anne Richards, chief investment officer at Aberdeen Asset Management, added: “I think it’s a good price but probably they could do better on that.”
