Drugs giant GlaxoSmithKline was today remaining tight-lipped about speculation that it was considering a £36 billion bid for US rival Eli Lilly.

According to Press reports, GSK has a strong interest in the group, which makes drugs including the anti-depressant Prozac.

The report said a deal between the two would form a company valued at more than £100 billion.

GSK, which has a plant in Worthing, is one of the biggest firms on the London Stock Exchange, while 125-year old Eli Lilly markets products all over the world.

A GSK spokesman refused to confirm or deny the report, adding: "We never comment on this sort of market speculation."

The report comes just days after US drugs group Pfizer revealed it was snapping up rival Pharmacia in a £38 billion deal.

The acquisition will create one of the world's biggest drug firms with brands ranging from Pfizer's Viagra to Pharmacia's Nicorette line of anti-smoking products.