Healthy Skepticism Library item: 7220

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

AstraZeneca/Shire Deal Makes Sense-Citigroup
New Ratings.com 2006 Nov 17
http://www.newratings.com/analyst_news/article_1424340.html

Abstract:

A takeover of Shire (SHPGY) by AstraZeneca (AZN.ISE) would “make strategic sense,” says Citigroup. Reacting to a press report about a potential deal, the bank notes “Shire’s ADHD business could fit well with AZN’s Central Nervous System group.” Points out that the two CEOs know each other well and that AstraZeneca “could pay up to 1,370p/share and derive EPS accretion of 7% in 2010.” Adds that a possible acquisition price of 1,300-1,500p is “not unfeasible”. Keeps Shire at buy and AstraZeneca at hold. Both declined to comment on the report Thursday. Shire -0.4% at 1,049p, giving up earlier gains, AstraZeneca -0.6% at 3.065p.