AstraZeneca Shares Rise Amid Reports Denying Mega-Merger Talks
The pharmaceutical giant's stock saw an increase after sources dismissed rumors of potential consolidation with a US rival.
AstraZeneca shares climbed 2.5%, or 296 pence, to 12,036 pence on Tuesday following reports that denied any discussions about a potential mega-merger with a US competitor. The company's stock had experienced a significant drop earlier in the week.
Reuters quoted a senior source within AstraZeneca who dismissed rumors of a potential tie-up with Bristol Myers Squibb (BMS). According to the source, "There is no deal between AstraZeneca and BMS. There never was a deal to be done, and there are no discussions between the companies." Another source cited by the report indicated that no active talks were underway between the two firms.
In contrast, shares of BMS fell 3% on Wall Street following the news. Earlier in the week, approximately £18 billion had been erased from AstraZeneca's market value as analysts and investors questioned the potential rationale behind the rumored merger.