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AstraZeneca shares drop on reports of $570b mega-merger
['Aug', 'Aap Newswire', 'Diana Novak Jones', 'Jacob Bogage', 'Ahmed Aboulenein', 'Riverine Herald', 'Jemma Jones', 'Louie Cina', 'Christian Marchetti', 'Jaci Hicken']
Riverine Herald Feed
A person familiar with the matter told Reuters that AstraZeneca and Bristol had held talks, confirming an earlier Financial Times report.
On Friday, the two had a combined market capitalisation of nearly $US400 billion ($A569 billion), with AstraZeneca valued at $US264.11 billion and Bristol Myers at $US133.41 billion.
"A combination with Bristol does not make strategic or financial sense," said Markus Manns, portfolio manager at Union Investment, an AstraZeneca shareholder.
Jefferies analysts said in a note they were puzzled by the reports of talks given AstraZeneca had a strong "growth and innovation profile".
"If there is one company that doesn't need financial engineering, it's AstraZeneca," they wrote.