Biotech bankers have experienced an unusual burst of activity after Oxford Glycosciences, a struggling research and development company, agreed to a £110m (€166m) merger with Cambridge Antibody Technology Group (CAT).

Through the deal CAT will issue new stock to shareholders in Oxford Glycosciences, who will own 36% of the combined entity. The price represents a 28% premium to the target's market capitalisation, but a discount to the cash it holds on its balance sheet, which was £135m at the end of 2002.