Oxford Glyco jumps 12% on hopes for a rival bid
Oxford Glycosciences, the biotech company seeking an all-share deal with Cambridge Antibody Technology, could become the subject of a bid battle after it revealed yesterday that "a number of parties, including Celltech" had requested information on its business.
It is understood there have been three or four expressions of interest. Celltech, the UK's biggest biotech company, is considering making a cash offer. Analysts think the US antibody specialist Mederex, with whom OGS already collaborates, could also be interested.
Shares in Oxford Glycosciences rose 12 per cent to 192.5p on the possibility of an auction. CAT's offer now values OGS, whose chief executive is David Ebsworth, at £94m, or 168p a share. This is some way below its target's current market value of £107m as the market bets on a higher offer being made.
Any rival bidder must make its move before 11 March when shareholders are due to vote on the CAT-OGS merger.
Analysts were divided on the likelihood of Celltech entering the fray. Sam Fazeli, an industry analyst at Nomura, said: "The same technology synergy that is proposed for the CAT-OGS merger also exists for Celltech and OGS."
But Emma Palmer, at WestLB Panmure, said a deal could distract Celltech from its existing business, particularly as it is also searching for a new chief executive. "We feel the company may be better served by making product acquisitions," she said.
Celltech declined to comment on its interest in OGS, or on reports its new chief executive will be Goran Ando, the research and development director at Pharmacia.
Dan Mahony, at Morgan Stanley, expressed doubts about the rationale of a Celltech bid. "CAT-OGS makes a lot of sense as it brings expertise in certain areas and more clinical development experts. Celltech already has these things."
Peter Chambre, CAT's chief executive, emphasised that his offer was the only formal one on the table. He said: "OGS brings us a stronger pipeline, is a good research and development fit and gives us more financial power." It would create a company that "could compete with the top tier of biotech companies and give UK investors a second, strong publicly quoted biotech company to choose from," he said.
Celltech shares rose 7p to 338.25p.
- 1 Keira Knightley topless: Conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 2 Argentina may change its capital city from Buenos Aires, says president
- 3 Joan Rivers: 'Palestinians deserve to be dead'
- 4 The 3D-printed key that can unlock anything
- 5 Lady al-Qa’ida: On the trail of Dr Aafia Siddiqui, the world’s most wanted prisoner
Keira Knightley topless: Conservative actress does own take on #Freethenipple campaign for Interview Magazine
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Oil tanker with $100 million cargo goes missing off Texas coast
Joan Rivers: 'Palestinians deserve to be dead'
Sir Paul McCartney makes his stance on Scottish independence known
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
- < Previous
- Next >
iJobs Money & Business
Highly Attractive Salary: Austen Lloyd: BRISTOL - This is a very unusual law c...
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...