In 2014, AstraZeneca rejected a £62.5bn bid to create the world’s largest pharmaceuticals business with its US rival Pfizer. After the latter still pursued AstraZeneca, however, the political pressure grew on prime minister David Cameron to intervene so as to protect jobs.According to Cable, Rolls-Royce presents a “much stronger case” for government intervention than that of AstraZeneca. He argued that the company’s aerospace business was too important to the British economy. Among ministers’ concerns about Rolls-Royce is the ten per cent stake possessed by US hedge fund firm ValueAct, which is allegedly pushing to gain board representation. As such, it was reported that officials were drawing up contingency plans which could be activated in the the event of a foreign takeover bid. One such method was for the firm’s nuclear submarines operation to be nationalised. Cable has also suggested that ministers should look into buying stakes in the company. Read more about the automotive industry:
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