AstraZeneca takeover: business secretary Vince Cable 'open-minded' over Pfizer bid

Business Secretary Vince Cable has said he will not rule out intervening in any formal bid by US pharmaceutical giant Pfizer to takeover AstraZeneca but insisted the Government is taking an neutral approach.

The Liberal Democrat told MPs he is "open-minded" about applying a public interest test and is "very alive to the national interest considerations" but the bid is "ultimately a matter for shareholders".

It comes after MPs announced they are to question senior executives from Pfizer over its £63 billion offer for the UK-based firm.

The Business, Innovation and Skills Committee will also question officials from AstraZeneca, which has so far rejected the overtures. The committee is likely to seek assurances from the US firm about job security if the takeover goes ahead.

Unions have called for an urgent meeting with Mr Cable to press the case for jobs, amid speculation that Pfizer could make a hostile bid.

Mr Cable told MPs: "The Government must and will approach this from the position of even-handed neutrality and recognise that this is ultimately a matter for the shareholders of both companies."

The Lib Dem said the Government was operating within the rules on takeovers introduced by the previous Labour government.

He added: "One of our options as the Government would be to consider using our public interest test powers. This would be a serious step and not one that should be taken lightly and I'm open-minded about it while stressing that we are operating in serious European legal constraints.

"We are very alive to the national interest considerations here. We see the future of the UK as a knowledge economy, not a tax haven and our focus is on what is best for the UK, securing Great British science, research and manufacturing jobs and decision-making in the life sciences sector."

Shadow business secretary Chuka Umunna claimed pledges made by Pfizer about its intentions for the future of the company were "simply not worth the paper they are written on".