Exclusive-'No discussions' over AstraZeneca-Bristol Myers deal, senior source says
By Maggie Fick and Sabrina Valle
Senior Source Denies AstraZeneca-Bristol Myers Merger Talks
Current Status of Deal Discussions
Aug 5 (Reuters) - There are "no discussions" ongoing between AstraZeneca and Bristol Myers Squibb over a potential deal, a senior source close to the matter told Reuters on Wednesday, quashing the prospect of a mooted mega merger between the drugmakers.
Official Statement from 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," said the source, speaking on condition of anonymity.
Company Responses
AstraZeneca and Bristol Myers Squibb both declined to comment on emailed questions from Reuters.
Market Reaction to Merger Speculation
Impact on Share Prices
AstraZeneca shares rose 2.9% on the Reuters report, while Bristol Myers Squibb shares were down 2.6% at 1341 GMT.
Shareholder Sentiment and Stock Movements
After the deal talks were first reported by the Financial Times on Sunday, AstraZeneca shareholders questioned the strategic logic of such a tie-up for AstraZeneca, which has been one of the most successful companies in the sector under CEO Pascal Soriot's 14 years at the helm. AstraZeneca shares slid around 9% after the reports, the stock's biggest one-day drop since 2020, while Bristol Myers shares were little changed.
Background and Regulatory Considerations
Initial Reports of Merger Talks
Reuters reported on Sunday, citing a person familiar with the situation, that the two drugmakers had held preliminary talks about a possible deal that would create a pharmaceutical behemoth with a combined value of nearly $400 billion.
Current Status and Regulatory Implications
Market Abuse Rules and Disclosure Requirements
Another person familiar with the matter said on Wednesday that no talks between the companies were currently active. The person added that, given the size of the potential deal, Britain's market abuse rules would have required an announcement had negotiations been underway.
(Reporting by Maggie Fick and Sabrina Valle. Additional reporting by Amy-Jo Crowley. Editing by Adam Jourdan and Jan Harvey and Mark Potter)
