Pfizer Makes $100 Bln Bid For AstraZeneca: Reports

(RTTNews) - US pharmaceutical giant Pfizer Inc. (PFE.N) offered to acquire rival UK drugmaker AstraZeneca Plc (AZN.L, AZN) for $101 billion, or 60 billion pounds, accourding to media reports.

The Sunday Times reported the takeover news citing some senior investment bankers and industry sources. The report indicated about informal conversations between both the companies about a possible merger. However, no talks are currently under way after AstraZeneca resisted the approach, the report said.

Nonetheless, Pfizer could return with a better offer for AstraZeneca as it sits on a huge cash hoard in overseas subsidiaries that it can utilize for a major acquisition. Pfizer, the maker of erectile dysfunction drug Viagra, would be heavily taxed if it repatriates the $70 billion fund to the U.S.

With both companies facing problems on future growth as they deal with expiration of patents, a merger could be a solution.

AstraZeneca has a market valuation of about $80 billion while Pfizer boasts of a market capitalization of around $193 billion.