LONDON, March 21 (Reuters) - British Biotech Plc, a former flagship of the UK biotechnology sector brought low by drug failures, said on Friday it had agreed to merge with privately-owned RiboTargets.
The deal will create a business with a market value of around 52 million pounds ($81.5 million), and will aim at making around 6.4 million pounds of cash-savings per year, including reducing headcount from 177 to around 110 employees.

LONDON (AFX) - British Biotech PLC and RiboTargets have announced an all-share merger valuing the combined group at 52 mln stg, with a net cash position of 43.5 mln stg as of Feb 28, and with a further 7.9 mln receivable from certain RiboTargets shareholders upon completion of the merger.
British Biotech says it expects annual cash savings of around 6.4 mln and says it will be well placed to participate in the further consolidation of the biotechnology sector, given the combination of its drug development expertise and RiboTargets' drug discovery capabilities.

The companies said the merged group will aim to reduce headcount by around 67 people, from 177 to 110 employees. They also announced the transfer of 17 British Biotech employees to Evotec OAI Ltd.

After completion of the merger, which has already been accepted by over 99 pct of Ribotarget shareholders, British Biotech will own 50.01 pct of the group and RiboTargets, 49.99 pct.

The group, which intends to change its name in due course, aims to produce at least one development candidate each year.

"This Merger signals the first step in repositioning British Biotech as a competitive commercial biotechnology company with the potential to create significant value over time for our shareholders," said Dr Peter Fellner, Chairman of British Biotech.

etain.lavelle@afxnews.com

British Biotech agrees RiboTargets merger
By Marianne Brun-Rovet
Published: March 21 2003 9:05 | Last Updated: March 21 2003 9:57


British Biotech, the former flagship of the UK biotechnology sector, on Friday drew the line under its troubled history by agreeing a merger with privately owned RiboTargets

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1045511951862&p=1012571727186

The first tick up for some time today after a good size deals at middle price

not been looking since the merger but as you say volumes are much higher than recent although not exceptional.

After good volume on the last couple days, yesterday had good move up and today is following that revival now 67-70p

There is a revival on some Biotechnology shares for the last few days, something is going on at the sector, and someone is buying on inside knowledge.

I do remember hearing last weekeng on Bloomberg TV someone commenting about some consolidation should be talking place on the Bio sector.

Yes ... there is a lot of talk about the need/desireability of consolidation