Celltech swoops on Oxford Glyco as £101m cash bid set to win day

Celltech has bought a 10 per cent stake in Oxford GlycoSciences, in a move that takes it to the brink of winning control of its smaller biotech rival.

Celltech's £101m cash offer is pitted against a rival paper bid from Cambridge Antibody Technology, which analysts said may no longer be viable.

The 10.6 per cent holding – which Celltech described as a blocking stake – was purchased at 182p a share yesterday. That is the same level as Celltech's offer and below the market price of OGS shares. These were steady at 187.5p yesterday.

The raid is a serious setback for David Ebsworth, the chief executive of OGS, who has vowed to try to entice additional bidders. The company has also been hoping CAT would raise its offer, the value of which has fallen to £86m.

Mr Ebsworth has rejected both existing bids because they value the company at less than the value of its cash pile of £130m. Insiders said that, as a minority shareholder, Celltech would prevent OGS being stripped of its cash by a successful bidder – a threat that makes it unlikely anyone else will now enter the fray. Analysts said that CAT may now have to admit defeat. OGS said it had not yet been informed of Celltech's raid, and CAT said it would evaluate its options over the weekend.

The first closing date for Celltech's offer is 31 March.