Sanofi Sticks to $69 per Share Genzyme Offer
French drugmaker Sanofi-Aventis poured cold water on a report it had raised its offer for U.S. biotechnology company Genzyme, saying it was sticking to its bid of $18.5 billion or $69 a share. "There is one offer, at $69 a share," spokesman Jean-Marc Podvin said on Thursday. "No other offer has been made to or discussed with the Genzyme board, its management or shareholders."
He reiterated Sanofi wanted to enter into constructive dialogue with Genzyme to best serve its interests.
A financial news service said on Wednesday Sanofi had pitched a new offer, at $71 a share, to buy Genzyme in return for the opportunity to conduct "partial due diligence. It cited a source close to the discussions.
Questions remain about what price would be high enough for Genzyme to open its books for Sanofi to clearly assess where the maker of rare disease drugs stands in solving its manufacturing problems following plant contamination.
In response to Genzyme Chief Executive Henri Termeer's refusal to get around the table to discuss the offer, Sanofi CEO Chris Viehbacher flew to New York this week to sound out Genzyme shareholders.
"I think it's a sensible strategy and the only one they can apply right now," said Alistair Campbell, an analyst at Berenburg, "The only way to try and change the situation is to emphasize that, in the absence of a white knight, Sanofi could walk and Genzyme would be doing a massive disservice to its shareholders."
Last week Termeer told press representatives that $69 was not a reasonable starting point for a deal, but declined to specify what price would warrant Genzyme giving Sanofi a closer look.
Sources previously said, Genzyme is seeking an offer at at least $75 a share before serious negotiations could begin.
Separately, a poll showed that analysts estimate Sanofi could buy Genzyme for around $78 a share or $20.8 billion. Buying Genzyme would help see Sanofi through the years when patent issues will slice about one third from sales and give Sanofi some breathing space in its hunt for growth which so far has consisted of bolt-on takeovers and drug partnership deals.
Rare diseases would add a new growth platform to Sanofi's business, expand Sanofi's overhauled drug portfolio with mid and final stage products, and expand its foothold in the world's biggest drugmarket.
But Viehbacher has said Sanofi would remained disciplined on price and was not prepared to go at any length to acquire Genzyme. At the same time, he said Sanofi was prepared to look at all options.
