ZURICH (Reuters) - Shares in Switzerland's Nobel Biocare (NOBN.VX: Quote, Profile, Research) rose more than five percent on Tuesday, with traders citing speculation the world's largest dental implant maker could become a takeover target.

"After the massive slump of Nobel Biocare's share price, (a takeover) is not such a bad idea at all," one Zurich-based trader said.

Nobel Biocare shares, which have lost 35 percent since the start of the year, were 4.6 percent higher at 41.32 Swiss francs at 1440 GMT, having hit 41.94 francs earlier and outpacing a slightly higher European healthcare sector index

The company declined to comment.

Nobel Biocare has been hit by slow business in Europe due to management problems and the economic slowdown in the United States, losing ground against main rival Straumann (STMN.S: Quote, Profile, Research).

Nobel Biocare shares trade at 15.2 times forecast 2009 earnings, a discount of nearly 20 percent against Straumann's multiple of 18.7.

(Reporting by Sven Egenter; editing by David Hulmes)