Pfizer to pay up to $4.5bn if Allergan bid fails due to regulatory obstacles

Pfizer is negotiating a 2%-3% break-up fee with Allergan that would be in line with most deals, according to sources, a sign of confidence such a merger could overcome regulatory hurdles.

The break-up fee, to be paid by Pfizer if it were to walk away from Allergan, would come out to $3bn-$4.5bn based on a $150bn deal value.

That would make it one of the highest ever break-up fees in dollar terms.