Genzyme reaches out to Sanofi to raise its bid if
September 2, 2010
Genzyme is good to sell, "but not $ 69 per share, or $ 18.5 billion in total, as proposed by Sanofi-Aventis. In recent hours, Henri Termeer, CEO of U.S. biotech coveted by the French laboratory, has changed its tone. After contrast, twice a categorical end of inadmissibility on the approach of Chris Viehbacher, the CEO of Sanofi, that's indeed the guru of biotechnology shows almost take his last speeches to the American press. According to him, he is also "highly probable" that the operation to run its course, but not in the form of a hostile raid: "It's unlikely.We too need each other in terms of future value. "
Reassure shareholders
These statements are intended to reassure the shareholders of Genzyme, some of which are moved by the refusal of its board of directors to initiate dialogue with Sanofi. It was also the goal that was Chris Viehbacher making public its proposal on Sunday night, after attempting to conduct an underground court in August. Upon disclosure of the bid from Sanofi, David Katz of Matrix Asset Advisors, an activist investor, has written to Genzyme to encourage the firm to receive her suitor. "There is a very substantial offer on the table.It's enough to start negotiations, rather than waiting for a higher initial offer, "pleads the finance, which states:" It is clear that the price of 69 dollars is only a starting point for negotiations and that recovery can be assessed consistently if Genzyme demonstrates that the company is worth. "
Important, these openings are not sufficient either. For Chris Viehbacher is itself under stress. Its board of directors with representation its two main shareholders, L'Oreal and Total – who collect 27% of the voting power – accepted "lip service" a buy, provided it does not exceed 70 dollars, according to a close the file. Therefore, the main weapon of Chris Viehbacher might be patience.It is, indeed, to hope that Genzyme lack of other contenders, eventually being convinced that an offer of 69 dollars is better than a stock price around 50 dollars, its value before Sanofi starts.
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