Elan Corp Plc sold its stake in rival Northern Irish drug maker Warner Chilcott Plc today, dealers said, cashing in on a recent run-up in the shares that was fuelled by hopes for a bid.
Stockbroker Davy placed Elan 's entire holding of 7.2 million shares, equivalent to some 4 per cent of Warner Chilcott, at a price between 800 and 810 pence, they said.
No comment was immediately available from Elan or Warner Chilcott.
Warner Chilott, formerly known as Galen Holdings, has received three bid approaches from private equity groups interested in acquiring the company, which specialises in women's health and urology.
The first approach, which industry sources said came from Blackstone Group, Texas Pacific and the private equity arm of Goldman Sachs, included an indicative offer of 800p a share, valuing the group at around £1.5 billion ($2.7 billion).
No details of the other two approaches have been disclosed and Warner Chilcott has cautioned that there is no guarantee that the approaches will translate into firm offers.
Interest in the company comes amid a recent pick-up in takeover activity in the healthcare sector.
Last year, another takeover offer for Warner Chilcott fell through after the bidder, named at the time by industry sources as Barr Pharmaceuticals Inc, pulled out when news of its interest leaked out.
Warner Chilcott's fortunes have ridden a roller coaster in recent years, with its shares hit by concerns about the safety of hormone replacement therapy and competition from rivals.
But the firm remains highly cash-generative, making it attractive to buyout specialists.