Sanofi un­will­ing to meet Gen­zyme de­mands

The Pak Banker - - Company& -

PARIS: Sanofi, France's biggest phar­ma­ceu­ti­cal com­pany, must de­cide this week whether to ex­tend its hos­tile ten­der of­fer at $69 a share, raise the bid, or walk away if it doesn't win sup­port from enough Gen­zyme share­hold­ers. Pho­tog­ra­pher: An­toine Antoniol/Bloomberg

Sanofi-Aven­tis SA is un­will­ing to meet de­mands by Gen­zyme Corp. to raise its $18.5 bil­lion of­fer and make a later pay­ment based on sales goals for the drug Cam­path, said three peo­ple with di­rect knowl­edge of the mat­ter.

The board of Sanofi, France's biggest phar­ma­ceu­ti­cal com­pany, would be open to one of the con­ces­sions, but not both, said the peo­ple, who de­clined to be iden­ti­fied be­cause the de­lib­er­a­tions are con­fi­den­tial. While ex­ec­u­tives of the com­pa­nies aren't in talks, their ad­vis­ers have been in con­tact, the peo­ple said.

Sanofi must de­cide this week whether to ex­tend its hos­tile ten­der of­fer at $69 a share, raise the bid, or walk away if it doesn't win sup­port from enough Gen­zyme share­hold­ers. The of­fer for the Cam­bridge, Mas­sachusetts-based com­pany ex­pires at mid­night on Dec. 10.

"We think Sanofi will ex­tend the of­fer with no bump" in price, Lionel Melka, co-man­ager of Bern­heim, Drey­fus & Co.'s Diva Syn­ergy Fund, an event-driven fund fo­cused on ac­qui­si­tion tar­gets that owns Gen­zyme shares, said in a Dec. 2 in­ter­view. "They re­ally be­lieve that no white knight will emerge."

Gen­zyme told share­hold­ers in Oc­to­ber to re­ject the bid, say­ing the price didn't in­clude po­ten­tial rev­enue from Cam­path and two other new medicines ex­pected to win ap­proval by 2013. Cam­path is ap­proved for blood can­cer, and Gen­zyme says it also works against mul­ti­ple scle­ro­sis. The com­pany is in the fi­nal stages of test­ing the drug against MS and ex­pects data from those tri­als next year. -Bloomberg

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