A sign brand headquarters Genzyme in Cambridge, Massachusetts, August 3, 2010.
Credit: Reuters/Brian SnyderBy Caroline JacobsPARIS | Monday, December 13, 2010 2: 38 pm EST
PARIS (Reuters) - Sanofi - aventis (SASY.PA) extended its offer $ 18.5 billion in cash for Group American biotechnology Genzyme (GENZ.O) until January 21 and left the door open the possibility of extending the most, a French drugmaker sign is ready for a long battle.
Almost 1 per cent of the shareholders of Genzyme had handed over to their shares of Sanofi $69-a-share offer before an unextended time limit has expired Friday, Sanofi said in a statement Monday.
Efforts of Sanofi purchase Genzyme may continue until may, when Genzyme holds its annual shareholder meeting, giving Sanofi a chance to try to topple the Board of Directors of Genzyme.
"To provide more time for holders of common shares of Genzyme to tender their shares, the tender is now scheduled to expire at 11: 59 p.m. et on January 21, 2011, except if it is wider," Sanofi said.
Long supported battles are not uncommon. Industrial gases company American Air Products (APD.N) attempted to buy waiting (ARG.N) since February, while that in the sector of pharmaceutical products, it took about eight months before the Roche (ROG.VX) could buy the rest of Genentech, it did not already own.
In any case, analysts are expecting widely Sanofi can win Genzyme if it improves its current offering. A Reuters poll in August suggested $78 could succeed.
"It's a failure for Sanofi on the number of shares tendered," said Jean-Jacques Le Fur, Oddo Securities analyst. "Sanofi will need pay."
Extending the invitation to tender could be a way for both companies, whose leaders seem so far have dug in their heels, bind the value of Genzyme to future sales of its drug candidate key of sclerosis, Campath.
"This extension gives Genzyme shareholder time to rethink and recognize there is no reason why Sanofi massively increase his offer without due diligence to justify that,"a Frankfurt-based analyst.""
"The longest that they expect more risk that Sanofi walks away, but also because there is no other bidder autour, will lower the price of the shares and they will remain empty handed over."
Genzyme CEO Henri Termeer spoke about the possibility of negotiating a right of potential value (TRC) last month as a way to break the deadlock and head of finance Sanofi Jerome Contamine called it "a good idea in principle" to settle disputes of value.
By TRC, Sanofi might eventually pay Genzyme investors more if Campath proves to be the success that Genzyme expects that it is. But it is the years of absence, investors would require patience.
Sanofi called $3.5 billion of Genzyme sales estimate for Campath "unrealistic" and presented an average sales of 700 million euros that it obtained from the analysts forecast several.
Is sanofi Genzyme interest known to the month of August, then put directly to the shareholders of Genzyme at the beginning of October, as Council of Genzyme said that the price was too low even open discussions.
Termeer said that it is prepared to sell the Cambridge, Massachusetts biotechnology it has built more than 25 years, but not at $69 per rare Genzyme, drugs for genetic diseases world leader manufacturer part, realized $ 4.5 billion of sales in 2009.
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