By Ian Watson SPECULATION is growing that that drugmaker Schering-Plough plans to offer to merge with Bristol-Myers Squibb. A merger would create the world's largest drugs group with a market capitalisation of around $80bn (Pounds 44.8bn, E64.8bn).

NEW YORK - Drug maker Bristol-Myers Squibb Co. said Monday it plans to cut costs by at least $500 million in 2007 through unspecified "productivity plans" and reiterated its intention to return the company to earnings growth that year. The company also said it intends to save $100 million in 2008.