Pfizer might consider GSK as “plan B”, analysts suggest

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Analysts at Berenberg Bank have suggested that a potential move by pharmaceutical giant Pfizer for the UK’s GlaxoSmithKline might be “not totally unrealistic” after its failed attempt earlier in the year to acquire AstraZeneca.

Adding that the idea was “perhaps a stretch”, the analysts said that Pfizer would have to offer a premium to GSK’s US$117bn market capitalisation but if it paid £20 a share, totalling US$164bn, with US$74 in cash the US group would still end up with a highly earnings-boosting deal, Reuters reported.

“GSK may just be too large for Pfizer to handle, but as a plan B it has some merits,” Berenberg added.

Pfizer has said recently that it is still considering big deals although it is unclear at this stage if it plans to renew its advances towards AstraZeneca in November although the British group could approach Pfizer this month to re-open negotiations if it so wishes.

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