Pfizer Expected to Make another Bid for AstraZeneca

Pfizer Expected to Make another Bid for AstraZeneca
May 16, 2014

Pfizer’s most recent attempt at taking over AstraZeneca in what is reported to be a record breaking $63billion bid, is not looking to be the sure-fire deal it may have originally seemed. The US Pharmaceutical giant Pfizer is facing some stiff opposite in the UK from all quarters, with many people demanding the UK’s Business Secretary, Vince Cable takes action. There are a few options for Cable to intervene in the takeover bid, one of these being an inquiry into the deal. Cable has stated on the record that such an inquiry would be quite tricky, lengthy and must take European merger law into consideration.

Many are convinced that should Pfizer succeed and become the new owners of AstraZeneca it would be at the cost of many UK Science-based jobs. Union chiefs are keen to remind everyone of the high number of job losses that took place when Kraft took ownership of Cadbury a few years back, and are predicting a similar situation where jobs losses and factory closures became a reality.

Having already made two offers for AstraZeneca, both of which have been rejected, a third offer may be submitted in the next few days. Many are already speculating that the next bid may soon be on the cards and may be too good for Astrazeneca to ignore. Will we finally see this huge British company falling into US hands? Time will tell.

Binary Option Traders Taking a Short Term View

With such high stakes involved in this proposed takeover deal this does of course have the knock on effect of the share price of each of these two companies. The two main factors that are going to determine the movement in share values over the next few days and weeks are highlighted below.

Another Offer on the Table – As Pfizer are unlikely to walk away from the deal, it is highly likely a third offer will soon be placed for AstraZeneca. This will have an instant effect  on the share price of both companies.

Union Pressure and Political Will – With the UK gearing up for a set of elections this month, Political leaders will want to maximize their respective voter appeal and as such statements and calls for action regarding an inquiry of one type or another are expected from certain political parties mainly, Labour and UKIP.

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Andrew Wright

Prior to founding tradersasset.com in 2014, Andrew worked as a proprietary trader, then as a market maker. As a market maker, he traded options in over 100 stocks, he then began trading currency pairs in 2013. Andrew still actively trades both, and prides himself on educating and informing traders on the benefits of both Binary Options and Forex.


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