WDEL Blog: Allan Loudell

Delaware & the U.K. have a common interest: Keeping Astra-Zeneca as it is

Have you been following U.S. pharmaceutical company Pfizer's repeated attempts to woo U.K.-based, AstraZeneca?

So far, AstraZeneca has thrice spurned Pfizer's overtures.

I talked Friday to DEDO Director Alan Levin, and he said the AstraZeneca crew in Delaware was ecstatic that AstraZeneca wanted to remain independent.

But one must reasonably ask: For how long?

Either Pfizer is going to sweeten the deal where AstraZeneca management can't resist, or else, turn it into a hostile takeover, appealing directly to shareholders. (Analysts are divided as to whether Pfizer would go hostile.)

Or perhaps some other pharmaceutical firm may take aim at AstraZeneca.

Any takeover would likely lead to lay-offs or a closing in Delaware, and of course, that would represent yet another blow to Delaware's fragile economy, already buffeted by automotive closings, DuPont's shrinkage, MBNA's demise as an independent entity, and challenges to Delaware as the corporate incorporation capital.

The only caveat: AstraZeneca has shrunk too, so a further shrinkage/closing wouldn't have the same impact than if it had suddenly collapsed from its former strength.

Anyway, the British may try thwart any such deal, even if U.S. regulators wouldn't.



This BBC account covers how Pfizer's "courtship" of AstraZeneca has become an issue in British politics...


Some observers suggest Pfizer seeks to enlarge itself only temporarily, reaching enough critical mass to ensure a logical break-up.



You can hear my interview with DEDO Director Alan Levin---

Audio Here

Posted at 7:57am on May 5, 2014 by Allan Loudell

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Comments on this post:

Mon, May 5, 2014 9:53am
Shrinkage? DuPont. AstraZeneca. And don't forget George Costanza.

Fragile economy? Corporate types screw-up, and start closing operations and firing people; they always blame the economy. Then give themselves big bonuses and golden parachutes.

Mon, May 5, 2014 9:07pm
What we really need is shrinkage of government.

Mon, May 5, 2014 11:08pm
No Pizza! What we need is Astra Zeneca to not get sold to Pfizer.

Drive up to New London, and you can still see the Kelo property that was pivotal in the Supreme Court's decision which allowed a locality to condemn a private property so politically-connected friends could buy it at sheriff's sale and redevelop it.

The houses were condemned; given to Pfizer; and still lie, 9 years later, abandoned in an overgrown grassy field.... the whole principal behind the court case was that it could be made better for society. Never happened.

No Pfizer, thank you...

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