Packets of prescription drugs made by the pharmaceutical firms AstraZeneca and Pfizer on May 7, 2014 in Cambridge. Photograph: Getty Images.
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Labour cheers a victory for the producers over the predators

AstraZeneca rejects Pfizer's final offer for the company. 

Is it all over for Pfizer? The board of AstraZeneca has this morning rejected its final offer of £69.4bn (£55 per share) for the company on the grounds that it fails to recognise its full value.

Chairman Leif Johansson rightly pointed out that Pfizer appeared to be primarily motivated by the tax advantage it would gain from being domiciled in the UK (where corporation tax is 21 per cent compared to the headline US rate of 35 per cent) and had failed to offer adequate guarantees over investment. He said:

Pfizer's approach throughout its pursuit of AstraZeneca appears to have been fundamentally driven by the corporate financial benefits to its shareholders of cost savings and tax minimisation. From our first meeting in January to our latest discussion yesterday, and in the numerous phone calls in between, Pfizer has failed to make a compelling strategic, business or value case. The Board is firm in its conviction as to the appropriate terms to recommend to shareholders.

Provided that AstraZeneca's shareholders choose to approve its decision, the company will survive in its current form.

Labour's criticism of Pfizer's approach, and its threat to block the deal by introducing a new public interest test in May 2015, undoubtedly played a role in stiffening the board's sinews. Chuka Umunna, who grasped the significance of the bid (the largest proposed foreign takeover in British history) from the start, has welcomed AstraZeneca's decision this morning, tweeting that "In the decision of AZ's board we see the long term overcoming the short term, fast buck mentality we need to see less of in UK business" and that "We don't want to see the takeover of great British firms driven by financial engineering - we want them to be driven by long term investment". 

The Tories sought to present Labour's demand for a tougher public interest test as crude state interventionism but it was hard for them to do so when figures such as Michael Heseltine, an economic adviser to the government, and Lord Sainsbury also questioned whether the deal was in the national interest. 

Heseltine called for the introduction of "reserve powers" to protect British companies when assets such as the country's science base are at risk."Foreign takeovers can often be hugely helpful and I have no doctrinal preoccupations - I've done enough takeovers of small businesses myself to know how valuable they can be. But the important point is that every other advanced economy has mechanisms of some sort on a failsafe basis to scrutinise foreign takeovers and we're the only country that doesn't."

As Heseltine said, there is no major western country in which it is easier for a foreign firm to take over a domestic company than the UK. If Britain is to move towards the "responsible capitalism" championed by Miliband, this will need to change. 

By holding out against Pfizer, AstraZeneca has set an important precedent that will deter future predators from seeking to capture more great British companies. 

George Eaton is political editor of the New Statesman.

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George Osborne takes up job at BlackRock - but what does it mean for politics?

The former Chancellor insists he hasn't forgotten about the Northern Powerhouse.

George Osborne is to take up a part-time role at asset management giant BlackRock.

The former Chancellor is understood to have been hired by the chief executive of the world's biggest investor, Larry Fink. He will be working alongside his former economic adviser Rupert Harrison.

The appointment has been approved by the Independent Appointments Committee and Osborne intends to continue as a backbench MP.

He said: "I am excited to be working with the BlackRock Investment Institute as an adviser. BlackRock wants better outcomes for pensioners and savers - and I want to help them deliver that. It's a chance for me to work part-time with one of the world's most respected firms and a major employer in Britain. 

"The majority of my time will be devoted to being an MP, representing my constituents and promoting the Northern Powerhouse.  My goal is to go on learning, gaining new experience and get an even better understanding of the world."

Once tipped as a future Prime Minister, Osborne's career ambitions were stymied after he backed Remain in the EU referendum and was sacked in Theresa May's Cabinet reshuffle. Whether he will find the halls of fund managers more comfortable than the green back benches is yet to be seen, but for now he has been clear he intends to continue his constituency duties. 

He will work at the BlackRock Investment Institute, which researches geopolitical, technological and economic trends. 

He is expected to provide insights on European politics and policy, Chinese economic reform, and trends such as low yields and longevity and their impact on retirement planning. 

While the pay packet has not been officially confirmed, Sky News quoted a source saying it would be hundreds of thousands of pounds.

But the move will also place a pro-Remain former Chancellor at the heart of the City of London, just as his Tory front bench is losing its support over Brexit negotiations.

Speaking shortly after the EU referendum vote, BlackRock chief executive Fink said he "didn't get a lot of sleep" the night of Brexit, and that the decision had led to greater uncertainty. 

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.