Time to reactivate Agent Cable

Another fast-paced lap in the global race coming right up. Pfizer, the US drugs company, may be forced to increase its offer for the UK-based AstraZeneca after the Americans’ improved bid was rejected by the AstraZeneca board.

But maybe this bid is just never going to make it. The respected healthcare investor Neil Woodford has supported AstraZeneca’s rejection of the US offer, stating that the company’s prospects as an independent business are good. Analysts also suspect that Pfizer’s intention on acquiring AstraZeneca would be to include the UK business in its global restructuring plans, meaning that the aftermath of any deal would be uncertain, and that any “assurances” offered by the Americans would necessarily be of limited value.

A nervous Downing Street spokesman was forced to deny that the government had become cheerleaders for the bid, although that is precisely what Conservative party chairman Grant Shapps sounded like on TV yesterday. Ed Miliband has rightly called for a much tougher test to be applied to this potential acquisition, stating that AstraZeneca clearly represents a strategic national asset. Even committed free marketeers such as Lord Sainsbury and Lord Heseltine agree that this deal looks worrying. So does the Sunday Times’ Camilla Cavendish(£).

What we really need now is a confident, assertive secretary of state for business who might be able to put a stop to this bid before it is too late. A secretary of state who, for example, told the Sunday Telegraph over three years ago that:

“There does remain a problem – as far as we can see from the objective evidence takeovers tend to reduce value, not increase it.” 

It would be great to hear Vince Cable speak up and say what he really thinks. I suspect he feels this deal is a nonsense as far as Britain’s industrial future is concerned. Apparently he is unable to say that out loud – for now. David Cameron has put two civil servants (and former investment bankers) Jeremy Heywood and John Kingman in charge of the discussions with Pfizer. Cable looks marginalised.

But this is not the first time in recent days that the worst of unthinking City orthodoxy has caused him difficulty. As Chris Blackhurst explained in The Independent last week, the Royal Mail privatisation left the government looking silly, raising far too little money and delivering a juicy payday for a few investors, after ministers had followed expensive (in every sense) advice.

It is not anti business to want the best future for a world class British business. National politicians are not completely powerless in the face of global corporations. Instead of feebly waving the Pfizer bid through, the government should be sticking up for UK-based R&D and centres of excellence. Ask the people of Sandwich in Kent what they make of Pfizer as a potential custodian of valuable British assets. Ask the people of Keynsham near Bristol how much they trust the guarantees made my acquiring US multinationals.

We know that Ed Miliband and Vince Cable have a high regard for each other. I hope that they might even now be conferring on this potential bid. For there may come a moment before very long, certainly before the general election, when the Right Honourable Member for Twickenham has to decide how he can best save his seat and be available to serve in a future Labour(-led) government. Picking the right issue to speak out on – even, perhaps, resign over – might be the best way of achieving those twin goals. Cable, a highly capable person, a serious thinker and, by his own admission, a social democrat, still has a big contribution to make. He just needs to free himself from the ties of coalition and say what he really thinks.

Dr Cable – your moment has come.