UPDATE 2-UK's Proximagen raises 50 mln stg for acquisitions

* Discussing terms with "a couple" of companies

* Has four "cornerstone" investors

* IP Group holding to be diluted

* Looking at Parkinson's disease, Alzheimer's (Adds chief executive comments)

By Ben Deighton

LONDON, June 5 (Reuters) - Britain's Proximagen Neuroscience Plc (PRXN.L) is raising 50 million pounds ($80.5 million) in what it said was one of the biggest fundraisings in the UK biotech sector in the past 10 years.

The company said on Friday it is to place 35.7 million shares at 140 pence each, compared with Thursday's closing price of 142-1/25 pence, and said all the shares had been allocated to four "cornerstone" investors.

It will use the cash to buy drugs, and possibly companies, in the central nervous system area, treating conditions such as Alzheimer's as well as Parkinson's disease where it already has expertise.

The placing brings its total warchest to 57 million pounds.

It said it is already talking terms with a couple of companies and it would be looking at buying drugs from small biotech companies, which are often running out of cash as a result of the credit crunch, as well as non-core drugs from larger companies.

It added big pharmaceutical groups were also taking part in some of the discussions, with a view to establishing possible future partnerships.

The shares are to be split among four main "cornerstone" investors, including asset manager Lansdowne Partners, it said.

"We're not evenly split across all the people coming in but we do have what I like to think of as four rock solid cornerstone investors," said Chief Executive Kenneth Mulvany.

The placing means IP Group (IPO.L), a company that takes university research and turns it into commercial outfits, will have its just over 20 percent stake in Proximagen diluted.

The fundraising marks a significant expansion for Proximagen, which has a market capitalisation of about 31 million pounds.

It will put the case for the placing to shareholders at a meeting on June 23 2009.

One analyst said Phytopharm (PYM.L), Minster (MPM.L) and Neuropharm (NPH.L) might represent an opportunity for the company, and added that Vectura (VEC.L) and BTG (BGC.L) have assets the company might be interested in. (Editing by Jon Loades-Carter and David Holmes)