CLOSING: ASTRAZENECA

Taking profits intraday

Just reading the blog on WSJ and talking to our spec sits desk and it looks like the bump is not possible now. Its a bit too messy and although they technically have till Monday it seems unless the AZN board accepts the £55 a share offer(which they have already rejected) there is no more wriggle room. Details of the blog below. We would take any profit you made this morning. A nice 3/4%

 


Mon, 19 May 2014 09:26

Buy on weakness

 

  • 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