UPDATE 1-Celesio shares surge on McKesson takeover report

Tue Oct 8, 2013 6:36am EDT

* Dow Jones Newswires says McKesson in advanced talks

* DJ says suitor could bid premium of up to 30 pct

* Celesio CEO say "no urgent need" for alliance, tie-up

* Shares jump as much as 19 percent

FRANKFURT, Oct 8 (Reuters) - Celesio shares jumped as much as 19 percent on Tuesday after Dow Jones Newswires reported that McKesson was in advanced talks to take over the German drugs distributor in a possible 3.74 billion euro ($5.08 billion) deal.

Should U.S. rival McKesson decide to make a bid, it could offer a premium of up to 30 percent, or close to 22 euros per share, Dow Jones cited people familiar with the matter as saying in a report also published by The Wall Street Journal Online.

The shares were trading 17 percent higher at 19.97 euros by 1003 GMT. The stock was already the top gainer on Germany's midcap index in early trade after its new chief executive made positive comments on the company's outlook to a German newspaper.

In the interview with daily Boersen-Zeitung, CEO Marion Helmes was quoted as saying there was "no urgent need" for an alliance or tie-up with any U.S. partner but such a deal could help bulk up purchasing power to get better discounts from generic drugmakers.

Celesio and its majority owner Franz Haniel & Cie declined to comment, while McKesson was not immediately available for comment.

Dow Jones said that under a likely deal structure, San Francisco-based McKesson would launch a voluntary takeover offer for all Celesio shares, with Franz Haniel, which owns just over 50 percent, having agreed to tender its stake.

McKesson has gained access to the books of Celesio, Dow Jones said, adding that the company may announce a bid as early as this month if it decides to go ahead.

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