AMGEN TRADING VOLUME HEAVY ON TAKEOVER RUMORS

Trading of Amgen Inc. shares was unusually heavy Friday based onwhat some Wall Street analysts referred to as faint rumors of apossible takeover by pharmaceutical giant, Bristol-Myers Squibb.

Analysts said rumors concerning New York-based Bristol-MyersSquibb's interest in Amgen, of Thousand Oaks, Calif., are not new.

However, mention of the takeover speculation in the Feb. 13 issue ofBusiness Week, along with Amgen's strong quarterly earningsreport, released last week, were cited by analysts as possible reasonsfor Friday's trading of 2.25 million Amgen shares. The volume wasmore than 1 million shares higher than normal.

Spokesmen for Amgen and Bristol-Myers Squibb declined commenton the possibility of a merger.

Analysts suggested that if the takeover rumors were based on morethan speculation Amgen's stock (NASDAQ:AMGN) would havesurged much higher than it did. The stock closed Friday at $62.87,up $1.

Bristol-Myers Squibb is frequently mentioned as a possible suitor forAmgen because both have drug programs aimed at cancer andneurological diseases.

Also, Amgen is considered a potential takeover target because it hasconsiderable cash on hand _ about $700 million at the end of 1994_ and two strong products, Epogen and Neupogen, which combinedfor more than $1.5 billion in sales last year.

With the consolidation trend in the drug industry expected tocontinue and big pharma looking for new product developmentsupport from biotechnology firms, analysts said Amgen is a likelytarget for a many pharmaceutical giants, including Europeancompanies seeking a major presence in the U.S. _ Charles Craig