The market reaction to the actual Pfizer-Wyeth deal isn't as pleasant as last week's rumor of the deal. The deal would value Wyeth shares at just over $50 per share, through a combination of cash and Pfizer stock. The problem here is the market environment. The deal isn't expected to close until late Q3 or early Q4. That is an eternity in this market, where there is a ton of uncertainty.
There is the rumor that Pfizer's rating could now be cut. It seems Wyeth investors are a little worried about waiting that long, and worrying about Pfizer's stock. That is partially why the deal got a good premium considering the market climate.
But deals this big take some time, no question. A lot can happen between now and then. It appears that for this morning at least, Wyeth shareholders would rather not wait it out.
Disclosure: Long WYE.