In a fresh bid to acquire AstraZeneca, Pfizer has offered to AstraZeneca a combination of the two companies pursuant to which AstraZeneca shareholders would receive, for each AstraZeneca share, 1.845 shares in the combined entity and 1,598 pence in cash.

The proposal represents an indicative value of £50 ($84.47) per AstraZeneca share, as against earlier offer of £46.61 ($76.62) per share of Astra Zeneca. This offer is based on Pfizer’s closing share price of $31.15 (and an exchange rate of $1.00:£0.5919) on 1 May 2014. The proposal would provide an opportunity for AstraZeneca shareholders to achieve significant value immediately upon closing of the transaction and at the same time participate in the short, medium and long-term value creation expected from the combination.

Commenting on the proposal, Ian Read, chairman and chief executive officer, of Pfizer, said “We have seen significant positive market reaction to the announcement we made on April 28, including from the shareholders of both our companies. The consistent message we have heard reinforces our belief that there is a highly compelling strategic, business and financial rationale for combining our businesses, with significant benefits for shareholders and stakeholders of both companies. We believe our proposal is responsive to the views of AstraZeneca shareholders and provides a sound basis upon which to arrive at recommendable terms for the combination of our two companies.”

Meanwhile, Pfizer' chairman and chief executive officer, sent a letter to David Cameron, Prime Minister, UK, regarding firm and enduring assurances about its commitment to the UK and its life sciences agenda.

In a letter to PM, Read said, “We would like to confirm that today, Pfizer made a non-binding cash and share proposal valuing each AstraZeneca share at £50 to the Board of AstraZeneca, as detailed in our accompanying public statement. We believe the industrial logic for a combination between Pfizer and AstraZeneca is compelling. A combined company would bring together powerful and world leading research expertise in key therapeutic areas such as Oncology, Inflammation, and Cardiovascular and Metabolic Disorders, in which the world class academic research resources in the “golden triangle” of Oxford, Cambridge and London would represent a vital component, along with the positive environment for inward investment that the UK Government has created. Ultimately, establishing the world’s largest research-based pharmaceutical company in the UK, together with the commitments made in this letter represent a strong indicator of the incentives that your Government has created to attract successful business to the UK.”