- U.K. drugs company Astrazeneca (LONDON:AZN) said Monday that it had rejected a final offer from U.S. drugmaker Pfizer (NYSE:PFE), saying the increased offer failed to recognize its full value.

On Sunday Pfizer had made a new offer of £55 per share, valuing AstraZeneca at approximately £70 billion, and said the new offer was final.

AstraZeneca chairman Leif Johansson said the final proposal was inadequate and "undervalues the company and its attractive prospects".

"We have rejected Pfizer''s Final Proposal because it is inadequate and would present significant risks for shareholders, while also having serious consequences for the Company, our employees and the life-sciences sector in the U.K., Sweden and the U.S.," he said.

Mr. Johansson said Pfizer''s motivation for a merger had been "fundamentally driven" by corporate financial benefits.

Pfizer planned to create the world''s largest pharmaceuticals company, with its headquarters in New York, but based in the U.K. for tax purposes.

That plan met with opposition from unions, politicians and scientists, amid fears over cuts to employment and research.

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