ASTRAZENECA

• Been buying AZN this morning
• PFE can still bump with Panel and AZN board approval
• PFE misjudged the level at which AZN would talk – splitting the bid / ask as indicated by AZN in their statement didn’t work
• Don’t think PFE to walk from a massive deal for such a small price. AZN is now trading reasonably close to the undisturbed and one suspects they have something up their sleeve for 20th May analyst update – something on the pipelines?
• Slightly concerned about the AZN rejection and the fact that price is not their only concern – and this hints at a reason why PFE don’t want to go hostile – the political ramifications of this deal would be significantly easier to navigate with both parties on board.
• Great Risk reward down here. looking at 5% downside/20% upside..Keep buying