Shire continues to gain ground on takeover speculation, with US analysts suggesting the pharmaceuticals group could be a good fit for Allergan, itself a bid target.
On Tuesday Shire rose more than 3% on reports it had hired Citigroup as an advisor because it expected an approach.
Now analysts at SunTrust have issued a note saying Shire could be a target for US group Allergan, which is fighting off an unwanted approach from rival Valeant. SunTrust said a bid for Shire would be more attractive than accepting Valeant's proposal. It said Shire investors would own around 30% of the combined group.
The suggestion has helped lift Shire 200p or more than 5% to £38.60.
