NEW YORK, March 7 (UPI) -- Pfizer Inc. has turned down a preliminary offer from Swiss drug company Novartis AG to buy its animal health business, sources told The Wall Street Journal.
The initial offer was $16 billion but Pfizer rejected that as too low.
The business is valued as high as $20 billion, but any final price is sure to be affected by the fact German pharmaceutical giant Bayer AG has also expressed interest in buying Pfizer's animal healthcare business, the Journal reported Wednesday.
Pfizer has a separate motive for turning down any offer. The company is considering a spinoff to avoid antitrust complications and the enormous tax bill that would be part of any sale.
"The animal-health business is a highly valued asset, and our decision about strategic options will be driven by value creation and delivering the best after-tax value for our shareholders," a Pfizer spokeswoman said.
In July, Pfizer indicated it would shed its animal healthcare and its infant nutrition businesses to boost share values and focus on its core drug business.
Its animal healthcare business -- which makes vaccines for livestock and household pets -- took in $4.2 billion in revenue in 2011, the Journal said.
