UK's Labour Urges Inquiry Into Pfizer's Bid For AstraZeneca

(RTTNews) - Ed Miliband, the leader of the U.K.'s opposition Labour Party, on Sunday urged an inquiry into the potential takeover of British drug maker AstraZeneca Plc (AZN.L, AZN) by U.S. rival Pfizer Inc. (PFE).

Labour has called for an independent investigation into the implications of the deal, and to see whether the bid is in the UK's national interest. Miliband has reportedly written to the PM to test public interest for takeovers of important businesses.

On Friday, AstraZeneca said its board has rejected the sweetened offer of 50 pounds per share from Pfizer, and urged its shareholders not to take any action. The revised offer reportedly valued AstraZeneca at 63 billion British pounds or $106 billion.

AstraZeneca, following its Board meeting to discuss Pfizer's offer letter, noted that the financial and other terms in the proposal are inadequate, substantially undervalue the firm, and are not a basis on which to engage with Pfizer.

Early Friday, Pfizer had announced the submission of its revised offer to persuade the British drug maker to engage in talks relating to a possible combination, after two failed approaches. The latest was the third offer from Pfizer and AstraZeneca has declined to engage in talks.

Pfizer Chairman and Chief Executive Officer Ian Read also sent a letter to British Prime Minister David Cameron expressing the firm's commitment to the U.K. and its life sciences agenda, if proposed combination with AstraZeneca is completed.