Oxford Glyco delays vote on CAT merger

Oxford GlycoSciences, the company at the centre of European biotech's first hostile bid battle, has postponed a shareholder meeting to vote on its agreed merger with Cambridge Antibody Technology.

The company is continuing to recommend CAT's all-paper deal over a higher cash offer from Celltech, but the OGS chief executive David Ebsworth said yesterday the adjournment would "allow adequate time to explore options for maximising value".

CAT sources said it is still "chewing over" the possibility of adding a cash element to its existing all-share offer, which was valued last night at £85m.

Insiders at Celltech said the decision amounted to OGS abandoning its recommendation of the current CAT offer, and predicted its £101m cash bid would now succeed.

CAT argues that its deal with OGS will create a seriousrival to Celltech, with enough cash to buy in and develop exciting new drugs. Celltech's offer – which the company itself has termed opportunistic – will bring it OGS's library of human proteins and cash pile of £130m, which will cover the costs of the acquisition.

OGS shares stayed stubbornly above the Celltech offer, unchanged at 195p. Investors continue to bet an increased CAT offer may push Celltech into raising its bid, or that a third predator will emerge. Immuno-Designed Molecules, a private French group, is believed to be considering a bid.