SHARES in medical products group Amersham rose by a quarter yesterday after the company revealed it had received a potential takeover approach.

The Buckinghamshire firm saw its share price leap 89p to 641p after it said it had received an approach "which may or may not lead to an offer for the company".

The shares surge added another £1bn to the company's market value, which stands at more than £4.8bn.

Amersham, which makes products for disease detection and medical research, did not reveal the identity of the potential suitor and said no agreement had been reached. A further announcement would be made "as appropriate", it said.

German pharmaceuticals group Schering, healthcare group Tyco and French industrial group DuPont have been tipped by City analysts as potential suitors.