Pfizer Closer to Financing for Acquisition of Wyeth

Pfizer, the world's largest drug maker by revenue, is in talks to acquire rival Wyeth in a deal that could require $25 billion in cash financing, sources told CNBC.

AP

The two sides have been in discussions for months and appear close to a deal as the talks are said to be friendly and contingent on the financing.

According to reports, Pfizer may have to repatriate some cash in order to complete the deal.

Reports of the talks sent shares in Wyeth over 13 percent higher in Frankfurt trade on Friday—their highest since August 2007—while Pfizer fell almost 3 percent.

Pfizer spokesman Raymond Kerins told Reuters the company does not comment on "market rumors or speculation," while Wyeth could not be immediately reached for comment.

Analysts expect Pfizer to announce more cost cuts and restructuring efforts as it faces a loss of sales when its patent on blockbuster cholesterol drug Lipitor expires in 2011.

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Based on Thursday's closing share price of $17.21, Pfizer was valued at nearly $118 billion. This month, Pfizer CEO Jeff Kindler told the Financial Times the pharmaceuticals group was open to acquisitions.

(Watch the accompanying video for more on the deal details...)

Pfizer reports fourth-quarter earnings next week, and has said it expects full-year 2008 revenue to be roughly similar to its 2007 revenue of $48 billion. But it expects 2008 earnings to show respectable growth thanks to continuing layoffs globally which are expected to help produce $2 billion in cost savings by year-end, compared with the end of 2006.

—Reuters contributed to this report.

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