A massive pensions fund with thousands of pensioners in Kirklees and Calderdale would benefit if a takeover of UK drugs company AstraZeneca goes ahead.
The firm has rejected a “final” £55 per share from giant United States rival Pfizer which could put an end to the protracted takeover bid.
But, it has emerged, the West Yorkshire Pension Fund, worth around £10 billion, could receive a multi-million windfall if the company is sold.
The pension fund is run by Bradford Council on behalf of the five West Yorkshire authorities including Kirklees and Calderdale.
Apart from the councils the fund administers pensions for schools and colleges including Kirklees College, Greenhead Sixth Form College and Calderdale College; Moor End Academy Trust, Royds Hall Trust School and Salendine Nook Academy Trust in Huddersfield; as well as Thornhill Community Academy in Dewsbury, Castle Hall Academy in Mirfield and Hipperholme & Lightcliffe High School Academy and North Halifax Grammar Academy.
The latest annual report for the year to March 31, 2013 showed that the pension fund had shares worth £74 million in AstraZeneca, its tenth biggest holding.
Most shares were held in HSBC, BP and Vodafone.
The fund has 246,000 members and 72,000 current pensioners.
AstraZeneca has rejected an improved, “final” offer valuing the company at £69 billion.
The UK-based firm said the Viagra maker’s proposal undervalued it by £5 billion and claimed it was motivated by tax saving and cost cutting plans.
AstraZeneca shares plunged as the prospect of a deal faded yet chairman Leif Johansson admitted he had “no idea” whether the saga was over. Monday is the deadline for making offers.
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