Will Warner-Lambert And Schering Be Next Merger?

CNBC correspondent Dan Dorfman has speculated that Warner-Lambert and Schering-Plough will combine, but both companies have declined to comment on what they termed just a rumor.

While analysts agree that the talk was nothing more than a rumor, they still feel that such a move would make sense. James Keeney of Rodman & Renshaw said combining the two would be an analyst's dream. Both companies have pharmaceutical and over-the-counter divisions, with S-P stronger in the former and W-L in the latter.

"I really don't have any idea if it's going to happen," said Mr Keeney, "but just looking at the trends in the industry, I would say they would be a candidate." As has happened in many industries, he added, the mid-tiered companies are being bought up. Few in that range are left now, aside from these two companies.