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Sanofi-Aventis launches hostile Genzyme bid | Sanofi-Aventis launches hostile Genzyme bid |
(40 minutes later) | |
Sanofi-Aventis has launched a hostile bid for Genzyme, after its friendly overture was rejected. | Sanofi-Aventis has launched a hostile bid for Genzyme, after its friendly overture was rejected. |
The French pharmaceutical company is offering Genzyme shareholders $69 cash per share, valuing the US biotech firm at $18.5bn (£11.8bn). | |
Sanofi had made the same offer to Genzyme's management in July, but was eventually turned down last month. | |
Genzyme produces treatments for multiple sclerosis, cholesterol and rare genetic diseases, among others. | |
Frustration | |
"Our strong preference has been and continues to be to work together constructively with the Genzyme board to reach a mutually agreeable transaction, but our attempts to do so have been blocked at every turn," said the French company's chief executive, Christopher Viehbacher. | |
The French firm said in a statement that it had spoken to shareholders owning more than 50% of Genzyme, and that these shareholders had expressed frustration at the lack of progress on merger talks, making Sanofi confident that its hostile offer would be successful. | |
The offer, which expires on 10 December, represents a premium of 38% over Genzyme's share price of $49.86 on 1 July - just before the acquisition plan became public. | |
Genzyme share price has been trading above $70 since August, fully pricing in the offer. | |
In a sign of Mr Viehbacher's frustration at his US counterpart, Sanofi also published a letter addressed to the Genzyme chief executive Henri Termeer. | |
The letter accused Mr Termeer of refusing to engage with them in a constructive manner, despite the two company heads having met on 20 September. | |
Among the letter's various complaints, it noted in particular Genzyme's unwillingness to let Sanofi meet the commercial team to discuss prospects for the US firm's multiple sclerosis drug, alemtuzumab. |