British drugmaker AstraZeneca has rejected a "final" $US117 billion ($A126.5 billion) takeover bid from US rival Pfizer, appearing to put an end to a deal that would have created a sector giant.
Pfizer lodged a fourth and final offer worth STG69 billion on Sunday, pitched at STG55 per share, and said it would not proceed without a recommendation from management.
"The fate of the deal is now up to AstraZeneca's shareholders. We believe our final proposal represents compelling and full value for AstraZeneca shareholders," Pfizer said in a statement on Monday.
With prospects of a deal dying fast, AstraZeneca's share price tumbled by as much as 15 per cent in Monday trades.
It later pulled back to stand at STG42.90, down 11 per cent from Friday's close. London's FTSE 100 index was 0.12 per cent lower at 6,847.79 points.
The US giant's bid was aimed at strengthening its research in cancer and slashing its tax bill. But opponents argued that jobs might have been cut in Britain and vital research eventually scaled back in the takeover occurred.
"We have rejected Pfizer's final proposal because it is inadequate and would present significant risks for shareholders, while also having serious consequences for the company, our employees and the life-sciences sector in the UK, Sweden and the US," said AstraZeneca chairman Leif Johansson.
He also attacked Pfizer's controversial plan to re-domicile the combined company in Britain for tax purposes, in a move that would help it avoid paying billions of dollars in tax to the US government.
"Pfizer's approach throughout its pursuit of AstraZeneca appears to have been fundamentally driven by the corporate financial benefits to its shareholders of cost savings and tax minimisation," added Johansson.
Pfizer has stated that the combined company would deliver an expanded product pipeline, deep potential cost cuts and significant tax savings from making Britain its home base for tax purposes.
Pfizer had stated on Sunday that its latest offer was the "final" approach, adding that it would not go hostile.
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