Sanofi could announce Genzyme deal next week: report

PARIS Thu Feb 3, 2011 3:03am EST

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PARIS (Reuters) - French drugmaker Sanofi-Aventis (SASY.PA) could announce a deal to buy U.S. biotech Genzyme GENZ.O early next week if final negotiations between the companies go smoothly, Le Figaro reported on Thursday.

Sanofi will offer a minimum of $72 or $73 a share in cash, as well as a contingent value right (CVR) based on the performance of experimental multiple sclerosis drug Lemtrada worth between $2 and $5 a share, the newspaper said. Genzyme has rejected Sanofi's initial $18.5 billion offer, worth $69 a share, which the French group has extended until February 15.

Sanofi this week gained access to detailed financial information about Genzyme as the two agreed in principle on the terms of a takeover, raising expectations that a final deal can be hammered out in the near term.

Sanofi has agreed to raise its bid to the low $70s-per-share range, plus the CVR milestone payment, a source familiar with the situation said earlier this week, but it did not raise the offer as high as the $75 per share value Genzyme had sought.

The final valuation could be in the "very high $70s" including the CVR, a second source said.

Sanofi is due to publish its results for 2010 on Wednesday, when it is seen posting a 3.2 percent drop in underlying earnings per share for the fourth quarter, excluding items such as amortization and litigation costs, according to the average of 13 estimates in a Reuters poll of analysts.

(Reporting by James Regan; Editing by Will Waterman)

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Comments (3)
langco wrote:
genz shareholders wont approve a sale a $78 and expect the french to pay the rest later.sanofi needs pay up front or go look for something cheaper to buy.genz is better off on its own….

Feb 03, 2011 8:50am EST  --  Report as abuse
Gumby wrote:
Genzyme doesnt really need to be taken over because it has plenty of cash and can grow on its own. It is like kidnapping a company!! Why cant Genzyme reject the offer and get it over with..???? Something fishy is going on… At first , Genzyme was not interested then changed its mind and allowed Sanofi to examine the books. Why after four months or more since ? Someone is forcing Genzyme’s hand.. Genzyme can keep going up in stock price much faster than if bought now and wrapped into SAnofi’s stock. SAnofi is running out of pipeline and is desperate. I bet that Sanofi is bribing Genzyme to accept its inferior offer at great expenses to shareholders!! Corruption!! dirty deal making is in the work… Warren Buffet is behind SAnofi !!

Feb 03, 2011 11:41am EST  --  Report as abuse
Gumby wrote:
Genzyme doesnt really need to be taken over because it has plenty of cash and can grow on its own. It is like kidnapping a company!! Why cant Genzyme reject the offer and get it over with..???? Something fishy is going on… At first , Genzyme was not interested then changed its mind and allowed Sanofi to examine the books. Why after four months or more since ? Someone is forcing Genzyme’s hand.. Genzyme can keep going up in stock price much faster than if bought now and wrapped into SAnofi’s stock. SAnofi is running out of pipeline and is desperate. I bet that Sanofi is bribing Genzyme to accept its inferior offer at great expenses to shareholders!! Corruption!! dirty deal making is in the work… Warren Buffet is behind SAnofi !!

Feb 03, 2011 11:41am EST  --  Report as abuse
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