Vaccine row chief in line for £100m

Labour Party donor Paul Drayson is set for a payout of up to £100million after a bidding war broke out for his pharmaceuticals group, Powderject.

Earlier this year Powderject won the £32million government contract to supply the nation with smallpox vaccines. But what was seen as a coup for the firm soon turned to allegations of cronyism when it emerged Mr Drayson had previously backed Labour to the tune of £50,000.

Today it emerged Powderject has received takeover offers from a number of parties, understood to be led by US biotechnology group Chiron.

It is believed Chiron has offered 500p a share, valuing the company at more than £450 million. At these levels, Mr Drayson's 20 per cent shareholding would be valued at over £90 million.

The 500p offer could be seen as quite attractive. Powderject shares have slumped as low as 227p in recent weeks. Before the furore over the closeness of Mr Drayson to Labour, and prior to the slump in stock market prices, the shares were changing hands at more than £6 .

Mr Drayson, 41, is seen as one of Britain's top entrepreneurs, having entered industry after gaining a PhD in robotics, and as such has been courted by Labour.

Oxford-based Powderject was keeping its cards close to its chest today, telling the Stock Exchange: "The board confirms it has received preliminary approaches... It is too early to say whether these might or might not lead to an offer being made for the company."