Questor: GlaxoSmithKline remains the choice over AstraZeneca David Redfern, chief strategy officer, said: "This [Indian] transaction represents a further step in GSK's strategy to invest in the world's fastest growing markets and, we believe, offers a liquidity opportunity at an attractive premium for existing shareholders." Last month, GSK announced a review of its European operations as sales fell 5pc in the third quarter, to £6.53bn, a decline which could lead to significant job cuts. The drugs group said continued pressure on drug prices in austerity-hit Europe, together with lower demand for vaccines, had hit sales. The company's growing business in emerging markets and its large consumer healthcare operation are both doing well, offsetting negative sales growth. When chief executive Sir Andrew Witty announced a review last month, he declined to give details on its impact, although analysts raised fears the move signalled "downsizing." In its third quarter results, published on October 31, GSK announced core earnings per share of 26.5p and a dividend of 18p, to be paid on January 3. GSK is trading on an estimated price to earnings ratio - a measure of profit per share - of 11.8 times this year compared with AstraZeneca on 7.6 times. Despite the premium valuation, GSK remains the choice over Astra because of its focus on consumer healthcare. It is also likely to have more stable earnings and therefore a more secure dividend. GSK is yielding a prospective 5.5pc this year, rising to 5.8pc next year. Hold.