The fund manager, who now runs Woodford Investment Management, said he is ‘relieved’ that AstraZeneca appears to have retained its independence and commended the board for what he has seen as ‘resolute resistance’ against the overtures of the US company.
Woodford also said he concurs with the AstraZeneca board’s long-term value judgement and predicted that company will deliver far better returns for shareholders over time than the proposed combination of cash and Pfizer shares would have done.
In a nod to the wider implications of the proposed deal Woodford also noted that alongside the financial prospects for the company itself, the continued existence of an independent AstraZeneca would allow its ‘great science’ to continue and ultimately patients will benefit.
These comments will not be well received by Pfizer and its advisers who on Monday had appealed for investors to do precisely the opposite in what appears likely to be an unsuccessful attempt to force a turnaround from the AstraZeneca board.
Some shareholders have been publicly critical of events although not in exactly the way Pfizer may have wished.
Schroders issued a statement which was critical of both sides of the proposed deal. The firm said it notes ‘with disappointment’ AstraZeneca’s quick rejection of Pfizer’s latest offer and the decision of the Pfizer board to draw what it sees as a premature end to negotiations by calling the latest proposal final.
It also implied it is not ready to write a deal off, urging the companies to recommence their engagement both with each other and shareholders.
Other UK asset managers declaring a view have been relatively thin on the ground so far, with the notable exceptions of Jupiter which said it was ‘disappointed’ by events, and Aberdeen Asset Management which offered some support for the AstraZeneca’s view that the offer was insufficient to warrant recommendation.
