The board of pharmaceutical company AstraZeneca on Friday rejected drug maker Pfizer's sweetened takeover offer.
Pfizer earlier in the day said it is offering 50 pounds ($84) a share in cash and stock, a 7.3 increase on a previous bid. The offer values AstraZeneca at $106 billion.
AstraZeneca's board responded in a statement that the terms are inadequate and substantially undervalue the company.
Leif Johansson, the chairman of AstraZeneca, says the Anglo-Swedish firm continues to invest significantly in research, development and manufacturing in the U.K., Sweden and the U.S.
"Pfizer's proposal would dramatically dilute AstraZeneca shareholders' exposure to our unique pipeline and would create risks around its delivery," he said. "As such, the Board has no hesitation in rejecting the proposal."