Sanofi ex­tends dead­line for Gen­zyme ten­der of­fer to Jan 21

The Pak Banker - - Company& -

NEW YORK: Sanofi took its of­fer for Gen­zyme di­rectly to share­hold­ers on Oct. 4, af­ter the com­pany's chief ex­ec­u­tive of­fi­cer, Henri Ter­meer, spurned the bid as too low and re­fused to ne­go­ti­ate. Pho­tog­ra­pher: Michael Springer/Bloomberg

Sanofi-Aven­tis SA, the French drugmaker mak­ing a hos­tile bid for Gen­zyme Corp., ex­tended the dead­line for the U.S. biotech­nol­ogy com­pany's share­hold­ers to ten­der their stock to Jan. 21. The of­fer of $69 a share, or about $18.5 bil­lion, was set to ex­pire Dec. 10. About 2.2 mil­lion shares, or 0.9 per­cent of the stock out­stand­ing, had been ten­dered by the mid­night dead­line, the Paris-based com­pany said in a state­ment to­day. Sanofi, France's largest drugmaker, took its of­fer for Cam­bridge, Mas­sachusetts-based Gen­zyme di­rectly to share­hold­ers on Oct. 4, af­ter the com­pany's chief ex­ec­u­tive of­fi­cer, Henri Ter­meer, spurned the bid as too low and re­fused to ne­go­ti­ate. The of­fer, made pub­lic Aug. 29, un­der­val­ues Gen­zyme's sta­ble of ex­per­i­men­tal drugs and ig­nores ex­pected rev­enue growth af­ter the com­pany fixed man­u­fac­tur­ing flaws that caused drug short­ages, Ter­meer said. "Gen­zyme val­ues it­self much higher than the cur­rent of­fer from Sanofi," said Michael Obu­chowski, chief in­vest­ment of­fi­cer at First Em­pire As­set Man­age­ment Inc. in Hauppauge, New York, in an in­ter­view last month. "And in­vestors value Gen­zyme higher than the cur­rent of­fer from Sanofi." Gen­zyme shares have traded above $69 since the of­fer was made pub­lic, sug­gest­ing Ter­meer has share­hold­ers who sup­port his re­fusal to ne­go­ti­ate with Sanofi at that price. The U.S. com­pany wants Sanofi to both in­crease its of­fer and to make a later pay­ment based on sales goals for its ex­per­i­men­tal mul­ti­ple scle­ro­sis drug Cam­path, three peo­ple with di­rect knowl­edge of the mat­ter said Dec. 7. Sanofi is un­will­ing to meet both de­mands, they said. -Bloomberg

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