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LONDON (Alliance News) - AstraZeneca Tuesday set out its defence against a GBP63 billion takeover offer from US rival Pfizer Inc, urging its investors to be patient because it is set to grow quickly after it invests in its pipeline and transforms the company over the next few years.

The US firm made an increased informal proposal for the UK company last week, which AstraZeneca subsequently rejected due to the fact that it would "dramatically dilute AstraZeneca shareholders' exposure to our unique pipeline and would create risks around its delivery", it said.

AstraZeneca Tuesday reaffirmed that its revenue in 2017 would be broadly in line with the USD25.71 billion it reported in 2013. However, the company expects revenue to more than double over the following five years, reaching more than USD45 billion by 2023.

The firm said it will accelerate the development of key developmental drugs it has in phase II and phase III trials, as it set out why it should remain independent. It said scientific discoveries have been accelerated to extend the late stage pipeline, it has made progress on its cancer drug pipeline, had several drugs in mid-stage development showing significant promise, and has 19 new molecular entity candidates set to start trials in 2014/15.

Barclays shares took a hit in morning trading after the bank reported a decline in first-quarter adjusted pretax profit as it was hurt by a slump in the performance of its investment bank, just two days before Chief Executive Antony Jenkins is due to present a strategic update revamping the underperforming division.

Shares in FTSE 250-listed construction giant Balfour Beatty plummeted after the building and engineering firm said that its construction business has continued to struggle, which is set to result in "significantly" lower group pretax profit for 2014 than previously expected. It also said that Chief Executive Andrew McNaughton has stepped down with immediate effect.
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FTSE 100: down 0.2% at 6,809.15
FTSE 250: down 0.1% at 15,921.61
AIM ALL-SHARE: down 0.3% at 822.80
GBP-USD: up at 1.6968
EUR-USD: up at 1.3934
GOLD: down at USD1,309.50 an ounce
OIL (Brent): up at USD108.01 a barrel
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Key UK Corporate News
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FTSE 100: Glencore Xstrata has raised production across a range of metals during its first quarter compared to the previous year but suffered a fall in zinc production year-on-year and in copper, zinc and gold production sequentially from the quarter just prior. Aberdeen Asset Management said first-half pretax profit fell after net revenue came under pressure due to a decrease in fees received, while operating expenses also increased in what was a difficult period for emerging markets. In addition to its takeover defense, AstraZeneca said the US Food and Drug Administration had approved its Epanova drug as a treatment for reducing high levels of blood fat. Media buying giant WPP has agreed to buy Quirk, South Africa's largest independently-owned digital marketing agency.

FTSE 250: Lonmin said the Association of Mineworkers and Construction Union plans to continue the ongoing platinum miners' strike in South Africa into its fifteenth week and noted that many employees have indicated their wish to return to work but fear for their personal safety. Hiscox reported a small decrease in first-quarter gross written premium in sterling terms as it continued to pull back in reinsurance. Estate agency Countrywide said it expects to deliver full-year profit at the top end of its expectations after a strong first quarter which saw its lettings business thrive as the UK's housing market continues its recovery. Lancashire Holdings has given its newly appointed group underwriting chief additional responsibilities, also making him the chief executive of its London operation, Lancashire Insurance Company (UK) Ltd. Ultra Electronics Holdings said it has bought aerospace products manufacturer ICE Corporation Inc for up to USD11.6 million, an acquisition that will add to Ultra's earnings and further boost its presence in the US market. Workspace Group has agreed to sell its residential redevelopment at Faircharm Estate, Creekside to London & Quadrant Housing Association in a deal worth GBP9.5 million in cash.

AIM All-Share: Xcite Energy is trading higher; the company has started a collaboration agreement with Statoil Ltd and Shell UK, part of Royal Dutch Shell, to share technical and operational information in order for potential joint operations at the Bentley and Bressay fields in UK North Sea. Tristel is also up after the maker of infection prevention, contamination control and hygiene products said its wipes system for decontaminating endoscopes used in ear, nose and throat departments had been recommended in an article in a Russian scientific journal, a development it hopes will lead to a jump in sales in the country. Leni Gas & Oil shares have risen as the firm said initial tests at its GY-664 well, the first new development well at the Goudron Field in Trinidad, have shown a larger-than-expected region of oil and gas bearing sands at the site. At the other end of the market, Fastnet Oil & Gas shares are trading lower after the company said it has failed to find commercial hydrocarbons at its first well in a series of wells designed to open up a new major producing region in the Foum Assaka offshore block in Morocco. Magnolia Petroleum shares are also down as the US-focused onshore oil and gas production company said it suffered a significant downgrade in its proved and producing gas reserves following a reassessment of the Mississippi Lime region geology in the US. Green Compliance shares have taken a hit, despite the company saying it finished the year to end-March in line with management expectations, as it now moves to focus on its water hygiene and treatment business.
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Top Economics And General
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British service sector grew at the fastest pace thus far this year during April, as increased activity and new business as well as better future prospects prompted firms to hire aggressively, survey data from Markit Economics showed. The Markit/Chartered Institute of Purchasing & Supply UK Services Purchasing Managers' Index climbed to 58.7 from 57.6 in March. The score exceeded economists' projection of 57.8. A PMI reading above 50 suggests expansion in the services sector, which has grown for 16 straight months now.
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Euro area retail sales increased for a third straight month in March, defying expectations for a decline, figures from Eurostat showed.Retail sales rose 0.3% from February, when sales grew 0.1%, which was revised from 0.4% gain.
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Slowing growth in emerging markets, especially China, prompted the Organization for Economic Cooperation and Development to trim its global growth outlook for 2014. In its latest economic outlook, the Paris-based OECD forecast the global economy to grow by 3.4% this year, down from a forecast of 3.6% in its November 2013 review. The recovery was forecast to strengthen by 2015, with global output growing 3.9%. The forecast showed the US continuing to lead the recovery among developed economies, with growth of 2.6% this year and 3.5% in 2015. The eurozone was also seen as emerging from years of belt-tightening on a stronger footing, the report showed.
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EU finance ministers were laying the groundwork for a controversial new tax on financial transactions, amid hopes that the project could help win over voters ahead of tricky European elections. Supporters argue that the measure will help make the financial sector act more responsibly. But the proposal has met fierce opposition, with critics worrying that the levy could drive investment away from Europe. The tax found no unanimous support in the EU. However, 11 countries have decided to proceed on their own. They include the eurozone's four largest economies - France, Germany, Italy and Spain - as well as Austria, Belgium, Estonia, Greece, Portugal, Slovakia and Slovenia.
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Three more companies add their names to the fast-expanding pipeline of London initial public offerings, as Clipper Logistics said it intends to float on the main market, while accounting software company Big Red Cloud Group PLC and online advertising company Marimedia Ltd said they will list on AIM.
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European foreign ministers met in Vienna for a diplomatic effort to defuse the Ukrainian crisis, one day after up to 30 people were feared to have been killed in fighting in the country's east. British Foreign Secretary William Hague said the annual meeting of the Council of Europe's foreign ministers should send a message to Russia not to interfere in this month's presidential election in Ukraine. "Russia is clearly intent on disrupting and preventing the elections," Hague said before the meeting
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The Eurozone is experiencing a more lasting recovery and any risk of deflation remains very low, the European Commission said Monday, while its latest projections showed that inflation will take more time than estimated earlier to return to the European Central Bank's target. In its Spring 2014 forecast, the executive-arm of the EU projected 1.7% GDP growth for 2015, which was lower than the 1.8% predicted in February. The growth forecast for this year was retained at 1.2%.
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A group of EU countries seeking to introduce a common levy on financial transactions have taken a "decisive step" toward implementing the tax on shares and certain derivatives traded from 2016, ministers said Monday. "We have made important progress towards a system of taxation that will include shares and derivatives," Italian Economy Minister Pier Carlo Padoan said, after the 11 countries held talks in Brussels.
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A White House climate report due to be released Tuesday will be the most comprehensive source of scientific information ever produced about how climate change would impact all regions of the US.
It is the third national climate assessment, John Podesta, senior adviser to the president, said Monday at the White House. Podesta previewed the report Monday, saying it will show the US is now the largest producer of natural gas in the world and the largest producer of gas and oil in the world.
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Thailand's Constitutional Court is to rule Wednesday on whether caretaker Prime Minister Yingluck Shinawatra broke the law in transferring a civil servant three years ago, which could result in her dismissal from office. The court announced the schedule after hearing the testimony of Yingluck and three other witnesses. If the court finds against her, it may dismiss the caretaker prime minister and her entire cabinet from office, creating a power vacuum that is expected to lead to more political turmoil.
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Afternoon Watchlist (all times British Summer Time)

13:30 US Trade Balance
13:55 US Redbook index
15:00 US IBD/TIPP Economic Optimism
22:30 US FOMC Member Stein Speech
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Wednesday's Key UK Corporate Events

Meggitt Interim Management Statement
Imperial Tobacco Group Half Year Results
Carillion Interim Management Statement
Inmarsat Q1 Results
Vertu Motors Full Year Results
Legal & General Group Interim Management Statement
G4S Interim Management Statement
HSBC Holdings Interim Management Statement
National Express Group Interim Management Statement
Numis Corporation Interim Management Statement
Costain Group Interim Management Statement
Mithras Investment Trust Interim Management Statement
Rightmove Interim Management Statement
J Sainsbury Full Year Results
JD Wetherspoon Q3 Interim Management Statement
esure Group Interim Management Statement
Experian Full Year Results
GW Pharmaceuticals Full Year Results
Accsys Technologies Trading Update
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Wednesday's Key Economic Events (all times British Summer Time)

n/a Russia Purchasing Manager Index Services
00:01 UK BRC Shop Price Index
00:15 Japan Markit Services PMI
00:50 Japan BoJ Monetary Policy Meeting Minutes
02:45 China HSBC China Services PMI
07:00 Germany Factory Orders
07:45 France Industrial Output
07:45 France Trade Balance
12:00 US MBA Mortgage Applications
13:30 US Nonfarm Productivity Preliminary
13:30 US Unit Labor Costs Preliminary
15:00 US Fed's Yellen Speech
15:30 US EIA Crude Oil Stocks change
20:00 US Consumer Credit Change
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By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance

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