Where there is smoke is there fire when it comes to rumors that Pfizer might try to buy troubled GlaxoSmithKline?

A Wall Street analyst is the latest to speculate that a mega merger could be in the works.

In a research note published Wednesday, Gregg Gilbert of Deutsche Bank AG published a note titled:

“Introducing PfizerKline.”

“We believe that the company has a sense of urgency to create value by leveraging the power of its balance sheet to do needle-moving deals,” Gilbert said, according to Bloomberg news. “Since media reports in the past have pointed to the potential for a Pfizer/GSK combination, we are revisiting that theme.”

Back on April 27, WRAL TechWire reported that  Pfizer, which failed a year ago in its attempt to acquire AstraZeneca could be targeting GSK, citing a story at the news site BidnessEtc.

Bidness cited its own sources and also speculation from Wall Street firm Gabelli & Co.

“Kevin Kedra, a New York-based analyst at Gabelli & Co., first highlighted the possibility of such an acquisition for Pfizer when he remarked that Pfizer could look into acquiring GlaxoSmithKline or Bristol-Myers Squibb Co (NYSE: BMY) in an attempt to boost its revenues and earnings,” it reported.

In the Bloomberg report, Gilbert is quoted as saying that a Pfizer-GSK deal would enable Pfizer to “unlock access to its balance sheet and improve its tax situation.”

Pfizer CEO Ian Read has made clear the company is eager for deals even with the recent acquisition of Hospira.

Hospira and GSK both have huge North Carolina connections.

GSK is cutting hundreds of jobs at its campus in RTP but still has a big production plant in Wake County and recently launched a new company in partnership with UNC-Chapel Hill that will target HIV.

Hospira is closing a production plant in Johnston County but maintains a big operation in Rocky Mount.

Pfizer has steadily increased its North Carolina presence in recent years.

Is it going to grow even larger?

Read the full Bloomberg report at: http://www.bloomberg.com/news/articles/2015-05-20/pfizer-would-benefit-from-taking-over-glaxo-deutsche-bank-says