Takeover talks lift Galen shares

SHARES in Galen Holdings surged more than 13% today after the drugmaker said it was in talks that may lead to a takeover offer.

Galen, which has been positioning its business for growth over the past 12 months, said it was approached several weeks ago by a rival pharmaceuticals firm.

Investment bank Credit Suisse First Boston is advising Galen on the proposed takeover, but refused to divulge the bidder's details.

The shares jumped 84 1/2p to 717 1/2p today on confirmation of the talks, but shareholders have been advised to take no action yet.

Northern Ireland-based Galen was in advanced merger talks with private-owned Dutch firm Ferring Pharmaceuticals five years ago, but those were aborted because of volatile financial markets.

While the two firms have remained on good terms, analysts said it was unlikely Ferring was involved in the latest talks.