US based biotech company Genzyme Inc. has rejected an $18.5 billion or $69 a share buyout offer from French drugmaker Sanofi-Aventis SA setting the stage for a protracted and potentially hostile takeover battle. Sanofi wants to buy Genzyme, a leading maker of drugs for rare diseases, to fuel growth as some of its key treatments lose patent protection. Sanofi shares have lost almost 18 percent this year, while the European healthcare sector is up 3 percent.
After more than a month of unconfirmed, low-level contacts between the sides, Sanofi went public with its $69 per share non-binding cash offer for Genzyme on Sunday, August 29, 2010. Genzyme shares rose 3.5 percent to $69.99 on the Nasdaq. Sanofi shares closed up 0.7 percent at 45.56 euros, in line with the Stoxx 600 European health care index. For the acquisition to proceed any further Sanofi has to increase the offer price in the range of $74 to $77 a share or $22.5 billion, as reported by analysts at Citigroup.
Check out the space for more updates on this deal with detail financial analysis for each of the above company…...
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