SHARES in Warner Chilcott jumped 48½p to 815½p yesterday as a second consortium of private equity groups, led by Bain Capital, the US buyout firm, joined the bidding contest with an indicative cash offer of 835p to 840p a share.

The approach, which is also backed by Carlyle Group and Thomas H. Lee, values the pharmaceutical group, which was formerly known as Galen Holdings, at about £1.57 billion.

The offer tops an earlier all-cash approach of about 800p a share from a consortium of private equity bidders. The group, comprising Blackstone, Texas Pacific and the private equity arm of Goldman Sachs, began due diligence on the group on Thursday.

It is understood that at least one other party, thought to be Credit Suisse First Boston, is considering an indicative offer. CSFB often acts in conjunction with Kohlberg Kravis Roberts, the US venture capital group that is known to be interested in adding small British drugs groups to its portfolio of investments.

Analysts also refused to rule out the chances of a trade buyer joining the auction. Last year Barr Laboratories, a US drugs group, tabled a £1.5 billion bid for the group, but withdrew the offer after its terms were leaked. A spokeswoman for Barr said yesterday that the company would not comment on “questions of potential acquisitions”.

Greenhill & Co, the investment banking boutique that specialises in handling auctions to venture capitalist buyers, said Hoare Govett had been hired to handle the sale.

A deal will crystalise the fortunes of John King, executive chairman, and Geoffrey Elliott, finance director. Mr King will make more than £120 million, while Mr King will earn £44 million.

Warner makes a number of healthcare products, including Sarafem, a treatment for severe premenstrual tension syndrome, and the contraceptives Ovcon and Estrostep. The company employs about 120 staff in the UK.