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Pharmaceutical industry

Sanofi-Aventis Launches $18.5 Billion Hostile Takeover Bid for Genzyme Corp.

Strategic Insights

— 1 min read

Sanofi-Aventis, a French pharmaceutical company, has launched a hostile takeover bid for Genzyme Corp., a US-based biotech company, valuing the deal at $18.5 billion. The offer, which is unchanged from a friendly bid made in July, values Genzyme shares at $69 per share, representing a 38% premium over their value before speculation about a possible deal surfaced. The acquisition would give Sanofi-Aventis access to Genzyme's promising drugs for high cholesterol and rare genetic disorders, as well as its lucrative treatments for these conditions.

Key Takeaways:

  • Sanofi-Aventis has launched a hostile takeover bid for Genzyme Corp., valuing the deal at $18.5 billion.
  • The offer, which is unchanged from a friendly bid made in July, values Genzyme shares at $69 per share.
  • The acquisition would give Sanofi-Aventis access to Genzyme's promising drugs for high cholesterol and rare genetic disorders.
  • Sanofi-Aventis CEO Chris Viehbacher met with Genzyme CEO Henri Termeer on September 20 but was unable to persuade him of the deal's merits.
  • Termeer has stated that a fairer value for Genzyme shares would be closer to $80.
  • The takeover bid is the largest hostile takeover in the pharmaceutical industry since Roche Holding's 2008 purchase of Genentech for $47 billion.
  • Genzyme shareholders holding more than 50% of the company's capital have met with Viehbacher and are considered supportive of the deal.

Statistics:

  • The hostile takeover bid values the deal at $18.5 billion.
  • The offer values Genzyme shares at $69 per share.
  • The acquisition represents a 38% premium over Genzyme's share price before speculation about a possible deal surfaced in July.
  • The takeover bid is the largest hostile takeover in the pharmaceutical industry since Roche Holding's 2008 purchase of Genentech for $47 billion.
  • Sanofi-Aventis' CEO Chris Viehbacher has met with Genzyme CEO Henri Termeer on September 20.

Sources:

  • Associated Press
  • 2010 Toronto Star. All rights reserved.
  • REUTERS

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