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Rhône, Hoechst near deal
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November 16, 1998: 3:41 a.m. ET
Reports: new $43B European pharma giant could be created "within days"
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LONDON (CNNfn) - Rhône-Poulenc is in negotiations to merge with German pharmaceutical firm Hoechst AG in a deal worth $43 billion, according to press reports.
Neither Rhône-Poulenc or Hoechst would comment on the reports in the British press over the weekend that the two companies are close to a deal.
Shares of Hoechst jumped nearly 4 percent to 77.9 marks in early Frankfurt trading. Shares have been rising in recent weeks on speculation the companies are in final stages of merger talks.
The tie-up of two of the of the world's largest pharmaceutical and life sciences groups would be one of the largest mergers ever seen in Europe.
Details are sketchy but several London newspapers carried reports of an imminent deal. The Financial Times said agreement could be reached "within days", though sources also warned the talks could collapse.
Lazard Freres, Hoechst's adviser, and Rothschild, Rhône-Poulenc's bank, have reportedly been locked in meetings to settle details of the merger package.
Hoechst (HOE) shareholders would be likely to take a larger holding in a merged group according to the reports. Hoechst has a market value of $26 billion, while Rhône-Poulenc (RP) is worth $16.6 billion.
The combined group would be dwarfed by companies like Glaxo Wellcome (GLX) which has a market value of $110 billion. 
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Hoechst
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