The proposed deal "underlines the step we took two years ago was the right one to take," a Novartis spokesman told Reuters, referring to the merger of Ciba-Geigy and Sandoz that created Novartis. "It will strengthen the competitiveness of the European companies, and we welcome competition," he said, adding: "This doesn't put us under pressure to change strategy at all."

"With regard to acquisitions, our strategy is still the same. We are opportunistic. We are looking around, but the strategic fit has got to be right," the spokesman said.

"It would have to strengthen or produce a leadership position in the fields where we are active. And the price would have to be right," he added.

But the spokesman said Novartis chief executive Daniel Vasella had made clear of late that size alonewas not the guiding criterion for the group's expansion.

"It is not of major importance to rank one, two or three. What is important is that we should be in the group of companies that have critical mass, that is that we are big enough to invest in R&D and have the necessary marketing drive," he quoted Vasella as saying.