London - CVC Capital Partners and Chinese drugmaker Shanghai Pharmaceuticals Holding Co are in talks to team up on a bid for Stada Arzneimittel AG, according to sources, as a bidding war for the German company heats up.

The companies will make a decision about a joint bid as soon as next week, the source, asking not to be identified as the deliberations are private.

There is no final decision yet on whether the firms will team up or make an offer, and CVC has also spoken to other Asian drugmakers, they said. Binding offers may be due this month, the source said.