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Sanofi extends Genzyme share deal deadline

Published on 14/12/10 at 08:58am

Sanofi-Aventis has extended the deadline to acquire Genzyme after the US biotech’s shareholders have so far proved immune to its charms.

Sanofi launched its takeover bid for the beleaguered US biotech in July, but Genzyme’s chief executive Henri Termeer has been reluctant to engage with the company, hampering its recent attempt to make its case directly to shareholders.

Genzyme has held strong that Sanofi’s offer of $69 a share – which amounts to an $18.5 billion cash offer – undervalues the US biotech’s long-term prospects, which it believes is closer to $82 a share.

Instead of upping its offer Sanofi has stuck at $69.00 per share but has now extended the deadline to which shareholders were required to respond to Sanofi’s hostile takeover bid.

Currently, the French pharma company has only managed to coax 0.9% of shares – this has been made doubly difficult as the company is currently trading at $70 a share – a dollar more than it is willing to buy for. 

The tender offer was previously scheduled to expire on December 10 but this has now been extended to January 21, 2011 - unless it is further extended. 

The rest of the terms remain unchanged, Sanofi said.

Ben Adams

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