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| Sanofi-Aventis launches hostile Genzyme bid | Sanofi-Aventis launches hostile Genzyme bid |
| (about 9 hours 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). | 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. | 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. | Genzyme produces treatments for multiple sclerosis, cholesterol and rare genetic diseases, among others. |
| The US company urged its shareholders to refrain from responding to Sanofi's approach for the time being. | |
| Genzyme's board said it would review the offer over the next 10 business days, and then advise shareholders of its formal position. | |
| Frustration | 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. | "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 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. | 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. | 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. | 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. | 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. | 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. |