Warner Chilcott rises on second buyer approach

Market Report: International stock markets rebounded yesterday and shares in Dublin recovered as sentiment improved, writes Siobhán Creaton.

Warner Chilcott's confirmation that it had received a bid approach from a second party provided the focus in terms of news, with speculation that a third bid could yet materialise.

The company, formerly known as Galen, had opened its books to a consortium that included Goldman Sachs's private equity arm, Blackstone Group, and Texas Pacific. It said that the new party had entered into a confidentiality agreement and was also beginning due diligence enquiries.

Both approaches were described as "preliminary in nature". Market speculation indicates that the second bidder is a trade buyer.

Warner Chilcott shares rose 54 cents in Dublin yesterday to close at €11.78, ending the session almost 5 per cent higher following the announcement.

United Drug shares rose sharply with dealers speculating that the surge was probably on the back of the level of interest in Warner Chilcott, with some investors taking the view that the interest might widen to others in the sector. United Drug ended the day 13 cents higher to €3.25, up over 4 per cent.

As the fourth quarter kicked off, there was some relief that Iona hadn't issued a profit warning with investors feeling more reassured about its prospects. The shares were unchanged in Dublin at €3.

IAWS shares rose 20 cent to end the week at €10.20. On Thursday, IAWS sold eight million shares in a placement taken up by investors in the US, Germany and Britain, which was viewed as positive for the stock.

Bank shares were a mixed bag with Irish Life & Permanent putting in the best performance gaining 11 cents to €13.11.

Bank of Ireland opened weakly but recovered some ground gaining five cents to €10.90. AIB shares fell four cents to €13.46 while Anglo Irish Bank added 45 cents to €15.20, up 3 per cent.

Settlement Day: October 6th