Pfizer, AstraZeneca Deal Doesn’t Make Sense: Hewson

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May 12 (Bloomberg) –- CMC Markets Chief Market Analyst Michael Hewson discusses Rupert Murdoch’s plan to merge Europe’s pay-TV assets and the CEOs of Pfizer and AstraZeneca going before the lawmakers to answer questions on their commitment to the U.K. He speaks with Anna Edwards on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Markets joins us now.

Let's talk about the b-sky-b news over the weekend.

They are in talks with fox to buy the german and italian sky assets.

What does this mean for b-sky-b? i'm not quite sure where they're going with this.

I can see why they're doing it.

They're under increasing pressure.

They've already got quite a few synergies in any case.

I have this thought.

I'm just wondering if this has something to do with the fact that maybe they're making themselves a little bit bigger so they're not so much of a takeover target.

Earlier this year, vodafone, there is some talk of vodafone might be interested in them.

I think the growth areas tablets.

Portable devices streaming on tenant -- streaming content to these devices.

With b-sky-b looking at this particular area, they're obviously looking at what liberty global are doing, what the tease sport are doing with respect to their content offerings.

Obviously they're trying to create synergies there.

There's art a lot of there in any case.

We know they have got a cash pile.

There've artie got an agreement with b-sky-b to stream content to their four g services.

I'm thinking to myself, they're looking in the wrong area.

Why make yourself bigger when you have the synergies anyway.

I'm sure you can make much better use of that money and may be -- your tie with vodafone.

Pfizer astrazeneca, the ceos of both companies will be in front of u.k. lawmakers.

How does all this play out?

I must admit, i'm not a big fan of politics.

I don't trust big ceos.

I view pfizer with a great deal of suspicion.

If you look at what -- if you look at what they're done in the past 10 years, what value has a created?

They are a $185 billion company.

They paid out $240 billion in terms of acquisitions and they are smaller than the cost of acquisitions.

I think is real is a bad deal for astrazeneca.

I think pfizer needs is more than they do.

I think the competition should be a driving factor behind steel.

I don't see where the value is for astrazeneca shareholders.

There is weakness in astrazeneca pipeline.

Maybe they do need some outside intervention.

I don't see how decreasing competition can resolve that.

We'd much more competitive drugs and much more competitive pharmaceuticals.

Let's talk about where they are in markets overall.

We've had some decent values in the u.s. and europe.

In germany in particular, things are coming off the boat a little bit.

The pmi seven disappointing.

You don't like germany's exposure to china and russia?

I don't. i certainly think russia is already in recession.

I think it is likely to remain so.

I think all the good news is priced in.

Actually, if you look at the rallies in the daxor the past five months, each high has been lower.

Obviously, u.s. markets are holding up fairly well.

Again, there is a disconnect between the lower caps and the big caps.

Michael, thank you very much.

This text has been automatically generated. It may not be 100% accurate.

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