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| Pfizer raises AstraZeneca offer | Pfizer raises AstraZeneca offer |
| (35 minutes later) | |
| US drugs giant Pfizer has raised the price it is offering for AstraZeneca to £50 a share, valuing the firm at £63bn. | |
| Pfizer's initial offer in January was worth £46.61 per AstraZeneca share, and was rejected by the UK firm. | Pfizer's initial offer in January was worth £46.61 per AstraZeneca share, and was rejected by the UK firm. |
| If successful, the deal would be the biggest takeover of a UK company by a foreign firm. | If successful, the deal would be the biggest takeover of a UK company by a foreign firm. |
| Pfizer also sent a letter to Prime Minister David Cameron to try to address concerns over the bid. | Pfizer also sent a letter to Prime Minister David Cameron to try to address concerns over the bid. |
| There have been worries that a takeover of AstraZeneca could affect the number of skilled jobs in the UK, where Astra employs about 6,700 people. | There have been worries that a takeover of AstraZeneca could affect the number of skilled jobs in the UK, where Astra employs about 6,700 people. |
| On Wednesday, four scientific bodies raised concerns about possible UK lab closures following a Pfizer deal, and a committee of MPs is considering an inquiry into the issue. | On Wednesday, four scientific bodies raised concerns about possible UK lab closures following a Pfizer deal, and a committee of MPs is considering an inquiry into the issue. |
| Pfizer told Mr Cameron it would go ahead with Astra's planned research and development (R&D) base in Cambridge, and retain its Macclesfield manufacturing facilities. | Pfizer told Mr Cameron it would go ahead with Astra's planned research and development (R&D) base in Cambridge, and retain its Macclesfield manufacturing facilities. |
| Pfizer also pledged that if the deal went ahead, 20% of the combined company's R&D workforce would be based in the UK. | Pfizer also pledged that if the deal went ahead, 20% of the combined company's R&D workforce would be based in the UK. |
| The US firm said its commitments would be valid for five years, unless circumstances changed significantly. | The US firm said its commitments would be valid for five years, unless circumstances changed significantly. |
| On Friday, Conservative peer Lord Heseltine called for greater powers for the UK government to intervene in foreign takeovers if crucial UK interests were at risk. | On Friday, Conservative peer Lord Heseltine called for greater powers for the UK government to intervene in foreign takeovers if crucial UK interests were at risk. |
| 'Compelling rationale' | 'Compelling rationale' |
| AstraZeneca confirmed on Monday that Pfizer had made a takeover approach for the company in January, but said that offer "significantly undervalued" the firm, which employs more than 51,000 staff worldwide. | AstraZeneca confirmed on Monday that Pfizer had made a takeover approach for the company in January, but said that offer "significantly undervalued" the firm, which employs more than 51,000 staff worldwide. |
| Following Pfizer's latest approach, AstraZeneca said its board would meet to discuss the proposal and "a further announcement will be made when appropriate". | Following Pfizer's latest approach, AstraZeneca said its board would meet to discuss the proposal and "a further announcement will be made when appropriate". |
| Announcing Pfizer's new offer, Pfizer chairman and chief executive Ian Read said: "We have seen significant positive market reaction to the announcement we made on April 28, including from the shareholders of both our companies. | Announcing Pfizer's new offer, Pfizer chairman and chief executive Ian Read said: "We have seen significant positive market reaction to the announcement we made on April 28, including from the shareholders of both our companies. |
| "The consistent message we have heard reinforces our belief that there is a highly compelling strategic, business and financial rationale for combining our businesses, with significant benefits for shareholders and stakeholders of both companies. | "The consistent message we have heard reinforces our belief that there is a highly compelling strategic, business and financial rationale for combining our businesses, with significant benefits for shareholders and stakeholders of both companies. |
| "We believe our proposal is responsive to the views of AstraZeneca shareholders and provides a sound basis upon which to arrive at recommendable terms for the combination of our two companies." | "We believe our proposal is responsive to the views of AstraZeneca shareholders and provides a sound basis upon which to arrive at recommendable terms for the combination of our two companies." |
| Pfizer - whose drugs include Viagra - has a global workforce of more than 70,000, with 2,500 in the UK. | Pfizer - whose drugs include Viagra - has a global workforce of more than 70,000, with 2,500 in the UK. |
| The company said it wanted to establish its corporate and tax residence in the UK, as well as its European headquarters. | The company said it wanted to establish its corporate and tax residence in the UK, as well as its European headquarters. |
| Heather Self, a tax expert at Pinsent Masons, told the BBC: "Pfizer want[s] to put a UK company on top of the whole group which is taking the whole company outside the US tax system." | Heather Self, a tax expert at Pinsent Masons, told the BBC: "Pfizer want[s] to put a UK company on top of the whole group which is taking the whole company outside the US tax system." |
| US federal corporation tax is 35%, while the UK's rate is 21% and is due to be cut to 20% in 2015. | US federal corporation tax is 35%, while the UK's rate is 21% and is due to be cut to 20% in 2015. |
| Ms Self added that a significant tax gain for the UK would be unlikely. | Ms Self added that a significant tax gain for the UK would be unlikely. |
| "All it will mean is moving a few senior people here and having a few board meetings here. It doesn't mean anything for the UK tax industry," she said. | "All it will mean is moving a few senior people here and having a few board meetings here. It doesn't mean anything for the UK tax industry," she said. |
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