Discuss the rationale for Pfizers bid,and explain why Kraft-Cadbury Essay

Discuss the rationale for Pfizers bid,and explain why Kraft-Cadbury has influenced the governments stance on mergers and acquisitions - Essay Example Such kind of mutiny looks scary whereby the fund managers from both Axa and Jupiter will be so disappointed according to the steps taken by AstraZeneca’s board although cannot cause an alarm to an extend resulting to resignation. Mr Lelf Johansson who is the AstraZeneca chairman said that all independent directors in most cases are paid to give their opinion, in case the shareholders seem not to like such opinion; the most likely repercussion is for them to appoint new set of directors. While at Axa together with co sulk, it is clear that Mr. Johansson and his staff should be appreciated because of the wise decision they took on behalf of their company and being calm despite of the difficult times very few company Bosses can behave the way he did to succeed. It has now become clear if not impossible that AstraZeneca’s board could manage to think of any option apart from the  £55 bid if it has to maintain its credibility-at least before the set up date expires for the takeover panel. And since now Pfizer has the ability to bid even higher than  £55 under the prevailing panel’s rules, the whole drama seems to be over now (Depamphilis, 2005). There is no correct explanation as to the reason leading to  £60-ish would stand to be the right tag price. It’s all obvious that all manner of bid battles of which at the end the winner takes it all. The starting point for Pfizer was poor and not impressive, few considered its opening target of  £50 a long shot at the moment but the offer rapidly dropped to  £48 leading to the share drop down of about 6% meaning that the value of its cash together with the share proposal were affected. Under the terms it was supposed to be that the offer for each AstraZeneca shareholder to walk away with 1.845 shares as a group while  £15.98 placed in cash. According to the Pfizer closing share stood at the price worthy $31.15, this means that the offer comes to about GBP50 per each available AstraZeneca