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Petroleum industry

Elf Aquitaine Postpones Sale of Sanofi-Synthelabo Stake Indefinitely

Strategic Insights

— 1 min read

Yesterday, French oil group Elf Aquitaine disappointed the markets by announcing it had indefinitely postponed the sale of 15.5% of Sanofi-Synthelabo, a French pharmaceutical group in which it has a 35% interest. The company cited the evolution of markets as the reason for the delay, but analysts remain unconvinced. The decision has left investors and stakeholders concerned, as it may indicate that the vendor was unable to secure a satisfactory price for the shares or that TotalFina's chairman, Thierry Desmarest, needs more time to understand L'Oreal's attitude towards its interest in Sanofi-Synthelabo.

Key Takeaways:

  • Elf Aquitaine has indefinitely postponed the sale of 15.5% of Sanofi-Synthelabo, citing the evolution of markets as the reason.
  • The decision may indicate that the vendor was unable to secure a satisfactory price for the shares or that TotalFina's chairman needs more time to understand L'Oreal's attitude towards its interest in Sanofi-Synthelabo.
  • TotalFina, which has a 35% interest in Sanofi-Synthelabo, has stated that the postponement changes nothing regarding its intention to sell the 15.5% stake, valued at approximately €4.5 billion.
  • L'Oreal, the cosmetics group and main shareholder of Sanofi-Synthelabo, has a 19.5% stake in the company, covered by a six-year shareholders' pact.
  • Elf Announced its intention to sell the shares in the midst of a takeover offer for TotalFina, with the proceeds contributing to the financing of the €50 billion cash-and-shares offer.
  • Sanofi-Synthelabo unveiled an 18% rise in first-half consolidated net earnings, which may have contributed to the decision to postpone the sale.

Statistics:

  • Elf announced its intention to sell 15.5% of Sanofi-Synthelabo, valued at approximately €4.5 billion.
  • L'Oreal holds a 19.5% stake in Sanofi-Synthelabo, covered by a six-year shareholders' pact.
  • Sanofi-Synthelabo reported an 18% rise in first-half consolidated net earnings.
  • Elf shares closed down 3.99% at €168.60, while TotalFina shares dropped 3.62% at €117.10.
  • Sanofi-Synthelabo shares fell 2.01% at €39.39, while L'Oreal closed ahead 0.16% at €611.

Sources:

  • Financial Times Limited, 1999, "Elf Aquitaine Postpones Sale of Sanofi-Synthelabo Stake Indefinitely" (exact wording)

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