FRANCE’S SANOFI-AVENTIS and US biotech Genzyme kept investors in suspense about their $20 billion transatlantic pharmaceuticals merger yesterday, as sources predicted a deal within days.
Talks about a possible takeover by the worlds sixth-largest drugmaker continued into the week, despite earlier expectations that the two sides would hammer out a reconciliation at the weekend, following a testy courtship drawn out over months.
Shares in Sanofi rose at the opening of Paris trading, indicating investors remained confident a deal would go ahead.
“We should not over-interpret whats happening,” said Justin Smith, analyst at UK brokerage MF Global. “In the end, this is a complicated negotiation; it’s a large transaction and they should take their time and be thoughtful about it.”
Buying Genzyme would add rare diseases as a new growth area for Sanofi, which under chief executive Chris Viehbacher has been diversifying to reduce exposure to cheaper generic drugs.
Until recently Genzyme – founded in 1981 and one of the first entrants into the young biotechnology sector, which develops drugs from living cells – had been unwilling to enter negotiations with Sanofi, which responded by launching a hostile $69 a share bid in October.
Sources familiar with the situation said that Sanofi could raise its cash offer to roughly $74 per share or $19.2 billion. – (Reuters)
