Pfizer bosses should be pleased with the outcome of their first appearance in front of UK lawmakers. They came across as profit-driven business managers, intent on squeezing value out of an AstraZeneca run by unpretentious scientists. That is accurate. And, it is as good as it gets for a semi-hostile foreign bidder trying to buy a UK champion.
Asked if he had begun his career as a salesman, Ian Read, Pfizer's chief executive, corrected that he had started out as an accountant. He later produced a coin he keeps in his pocket, engraved with his ethos - "straight talk; own it." That at least gave him the opportunity to take his elbows off the table. His chief financial officer had his sleeves rolled up, as if ready for a fight, revealing a colossal gold watch. In style, it looked like a hearing into investment banking. As for substance, there was no commitment from the US group to keep an absolute, minimum number of UK jobs.
At least AstraZeneca CEO Pascal Soriot was flanked by two genuine scientists. They made a convincing display of doubting the logic of a combination with Pfizer and the attractiveness of the enlarged company's shares. Theirs was the easy side of the argument, with warnings about the impact of merger integration on drug discovery, and suggestions that treatments could be delayed and patients would suffer. That kind of message would help secure public and political support for AstraZeneca in a hostile situation.
But Soriot publicly conceded that it would be his board's duty to consider a formal offer, and described what could be an acceptable bid for Astra: more value, and a credible plan for successful implementation.
These grillings are an essential part of the takeover process for large UK companies. Still, nothing happened in this session that would discourage Pfizer - not even the new threat of legislation to hold it to its promises on jobs. AstraZeneca won the day on sympathy and substance. But Pfizer learned what it needs to do to put pressure on its target - add more cash, more value, and explain how two companies of this size and complexity can be mashed both quickly and without disruption. The value will be the easier side of that particular coin.
Asked if he had begun his career as a salesman, Ian Read, Pfizer's chief executive, corrected that he had started out as an accountant. He later produced a coin he keeps in his pocket, engraved with his ethos - "straight talk; own it." That at least gave him the opportunity to take his elbows off the table. His chief financial officer had his sleeves rolled up, as if ready for a fight, revealing a colossal gold watch. In style, it looked like a hearing into investment banking. As for substance, there was no commitment from the US group to keep an absolute, minimum number of UK jobs.
At least AstraZeneca CEO Pascal Soriot was flanked by two genuine scientists. They made a convincing display of doubting the logic of a combination with Pfizer and the attractiveness of the enlarged company's shares. Theirs was the easy side of the argument, with warnings about the impact of merger integration on drug discovery, and suggestions that treatments could be delayed and patients would suffer. That kind of message would help secure public and political support for AstraZeneca in a hostile situation.
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These grillings are an essential part of the takeover process for large UK companies. Still, nothing happened in this session that would discourage Pfizer - not even the new threat of legislation to hold it to its promises on jobs. AstraZeneca won the day on sympathy and substance. But Pfizer learned what it needs to do to put pressure on its target - add more cash, more value, and explain how two companies of this size and complexity can be mashed both quickly and without disruption. The value will be the easier side of that particular coin.