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.

PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
News
Bourgogne wine maker Laboure-Roi vice president Thibault Garin (L) offers the company's 2013 Beaujolais Nouveau wine to the guest in the wine spa at the Hakone Yunessun spa resort facilities in Hakone town, Kanagawa prefecture, some 100-kilometre west of Tokyo
i100
Voices
Oscar Pistorius is led out of court in Pretoria. Pistorius received a five-year prison sentence for culpable homicide by judge Thokozile Masipais for the killing of his girlfriend Reeva Steenkamp
voicesThokozile Masipa simply had no choice but to jail the athlete
Arts and Entertainment
James Blunt's debut album Back to Bedlam shot him to fame in 2004
music

Singer says the track was 'force-fed down people's throats'

News
i100
Life and Style
The Tinder app has around 10 million users worldwide

techThe original free dating app will remain the same, developers say

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Helpdesk Analyst

£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...

Senior Helpdesk Analyst / Service Desk Co-ordinator

£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...

Senior Pensions Administrator

£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...

Corporate Actions Administrator / Operations Administrator

£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...

Day In a Page

Two super-sized ships have cruised into British waters, but how big can these behemoths get?

Super-sized ships: How big can they get?

Two of the largest vessels in the world cruised into UK waters last week
British doctors on brink of 'cure' for paralysis with spinal cord treatment

British doctors on brink of cure for paralysis

Sufferers can now be offered the possibility of cure thanks to a revolutionary implant of regenerative cells
Let's talk about loss

We need to talk about loss

Secrecy and silence surround stillbirth
Will there be an all-female mission to Mars?

Will there be an all-female mission to Mars?

Women may be better suited to space travel than men are
Oscar Pistorius sentencing: The athlete's wealth and notoriety have provoked a long overdue debate on South African prisons

'They poured water on, then electrified me...'

If Oscar Pistorius is sent to jail, his experience will not be that of other inmates
James Wharton: The former Guard now fighting discrimination against gay soldiers

The former Guard now fighting discrimination against gay soldiers

Life after the Army has brought new battles for the LGBT activist James Wharton
Ebola in the US: Panic over the virus threatens to infect President Obama's midterms

Panic over Ebola threatens to infect the midterms

Just one person has died, yet November's elections may be affected by what Republicans call 'Obama's Katrina', says Rupert Cornwell
Premier League coaches join the RSC to swap the tricks of their trades

Darling, you were fabulous! But offside...

Premier League coaches are joining the RSC to learn acting skills, and in turn they will teach its actors to play football. Nick Clark finds out why
How to dress with authority: Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear

How to dress with authority

Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear
New book on Joy Division's Ian Curtis sheds new light on the life of the late singer

New book on Ian Curtis sheds fresh light on the life of the late singer

'Joy Division were making art... Ian was for real' says author Jon Savage
Sean Harris: A rare interview with British acting's secret weapon

Sean Harris: A rare interview with British acting's secret weapon

The Bafta-winner talks Hollywood, being branded a psycho, and how Barbra Streisand is his true inspiration
Tim Minchin, interview: The musician, comedian and world's favourite ginger is on scorching form

Tim Minchin interview

For a no-holds-barred comedian who is scathing about woolly thinking and oppressive religiosity, he is surprisingly gentle in person
Boris Johnson's boozing won't win the puritan vote

Boris's boozing won't win the puritan vote

Many of us Brits still disapprove of conspicuous consumption – it's the way we were raised, says DJ Taylor
Ash frontman Tim Wheeler reveals how he came to terms with his father's dementia

Tim Wheeler: Alzheimer's, memories and my dad

Wheeler's dad suffered from Alzheimer's for three years. When he died, there was only one way the Ash frontman knew how to respond: with a heartfelt solo album