Sign in Subscribe
Pharmaceutical industry

Sanofi-Aventis Considers Boosting Bid for Genzyme

Strategic Insights

— 1 min read

Sanofi-Aventis is reportedly contemplating increasing its USD18.5 billion all-cash takeover offer for Genzyme to USD69 per share, with a potential boost of USD1 to USD2 per share expected in the coming week. This decision comes after Genzyme rejected Sanofi's initial offer, citing undervaluation of the company. The French drug giant has secured financing for the acquisition from various top-tier banks, including JPMorgan, BNP Paribas, and Citigroup.

Key Takeaways:

  • Sanofi-Aventis is considering increasing its USD18.5 billion takeover bid for Genzyme by USD1 to USD2 per share, potentially reaching USD70-71 per share.
  • The initial offer of USD69 per share was rejected by Genzyme, which deemed it too low and undervalued the company.
  • Sanofi is seeking to acquire Genzyme to boost growth and increase its presence in the biotechnology sector.
  • The company has secured financing for the acquisition from top-tier banks, including JPMorgan, BNP Paribas, Citigroup, and Bank of America Corp.
  • Genzyme is seeking at least USD75 per share or up to USD80 per share, making the current offer substantially lower.

Statistics:

  • USD18.5 billion: The initial value of Sanofi-Aventis' takeover bid for Genzyme.
  • USD69: The initial per-share offer for Genzyme.
  • USD1 to USD2: The potential boost in the share price expected in the coming week.
  • USD75: The minimum amount Genzyme is seeking per share.
  • USD80: The maximum amount Genzyme is seeking per share.

Sources:

  • Bloomberg (no date specified)
  • Reuters (no date specified)
  • Comtex SmarTrend Alert (no date specified)
  • M2.COM (no date specified)

Read more