Amgen, AbbVie Seen as Possible AstraZeneca White Knights

The largest proposed acquisition in drug-industry history may spark further deals asAstraZeneca Plc (AZN) tries to sort out alternatives to Pfizer Inc.’s (PFE) unsolicited 58.8-billion-pound ($98.7 billion) takeover approach.

AstraZeneca may seek a merger of equals with Amgen Inc. (AMGN) or AbbVie Inc. (ABBV), both of which have cancer programs, as a defense strategy, said Andrew Baum, a London-based analyst at Citigroup. Or the U.K. drugmaker may find itself the subject of further unwanted approaches from the likes of Sanofi, which would be attracted also to AstraZeneca’s diabetes assets.

Those scenarios are among the many swirling as investment bankers, analysts and investors puzzle out the ramifications of Pfizer’s announcement that London-based AstraZeneca spurned an acquisition proposal. AstraZeneca shares rose above the 46.61 pounds that Pfizer offered in January, indicating investors expect the company to be sold at a higher price.

Pfizer could raise its offer to try to entice AstraZeneca into negotiations, begin a hostile bid or walk away if AstraZeneca refuses to talk. Under U.K. takeover law, New York-based Pfizer has a month to decide whether to bid for AstraZeneca or to pull out.

“The game is open,” Odile Rundquist, an analyst with Helvea SA in Geneva, said today in an interview. “AstraZeneca will be under pressure to listen to Pfizer now. Astra could also seek a merger of equals with the likes of an Amgen. Or it could get another approach.”

Amgen Uninterested

Amgen hasn’t had any discussions with AstraZeneca and it wouldn’t fit the company’s strategy, said a person familiar with Thousand Oaks, California-based Amgen’s plans. The person asked not to be named because they weren’t authorized to speak about the matter on the record.

Amgen, the world’s biggest biotechnology company by revenue, declined to comment on the speculation, as did AbbVie.

Pfizer is considering its options, said Andrew Widger, a spokesman for the company, when asked if Pfizer would consider going directly to AstraZeneca shareholders with a hostile takeover offer.

“If and when there is a specific proposal or consummated transaction we will then be able to speak to specific aspects and details as appropriate,” he said in an e-mail.

Shares Rise

AstraZeneca rose 14 percent to 46.67 pounds at the close in London, the highest value since at least 1993. Sanofi advanced 1.3 percent to 77.15 euros. Pfizer rose 4.2 percent to $32.04 at the close in New York. AbbVie climbed 3.5 percent to $50.87 and Amgen gained less than 1 percent to $111.48.

Bank of America Corp., JPMorgan Chase & Co. and Guggenheim Securities are providing financial advice to Pfizer while Skadden, Arps, Slate, Meagher & Flom LLP is its legal adviser. AstraZeneca listed Evercore Partners Inc., Goldman Sachs Group Inc. and Morgan Stanley as advisers in a statement today.

Pfizer approached AstraZeneca in January with the 46.61-pound-a-share acquisition proposal, and walked away when AstraZeneca declined to pursue talks, Pfizer said in a statement today. The proposal “very significantly undervalued” AstraZeneca and the U.K. company also was concerned that Pfizer wanted to pay 70 percent of the price in shares, AstraZeneca said in a statement today.