Sanofi Aventis said on Monday that it would extend its $18.5 billion offer for Genzyme until January 21, 2011 in a move to keep its proposed deal alive. The extension is said to provide additional time to allow holders of Genzyme common stock to tender their shares
After months of negotiations, Sanofi began a hostile takeover attempt in October, offering $69 a share. The price, which Genzyme’s board has said is too low, remains the same under Sanofi’s extension. While Sanofi has attempted to circumvent the Genzyme board and build shareholder support for its offer, the minimal response would indicate that most investors in the company are waiting for something better.
Given that they received less than 1 percent shareholder support for their bid, it is perplexing, to say the least, how Sanofi could simply renew their offer without changes. Meanwhile, the possibility of additional payments tied to the performance of Genzyme drugs, like its multiple sclerosis treatment Campath, has emerged as a way the two companies might overcome their differences. Shares of Genzyme slipped $0.17, or 0.24 percent, to settle at $69.82 at the close on Friday, December 10, 2010.
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