9:40 AM
Sanofi announces $18.5 billion bid for Genzyme
Addison Ray
PARIS | Sun Aug 29, 2010 12:33pm EDT
PARIS Reuters - French drugmaker Sanofi-Aventis has submitted a non-binding proposal to acquire U.S. biotech company Genzyme in an all-cash deal worth about $18.5 billion, it said on Sunday.
Genzyme shareholders would receive $69 per Genzyme share in cash, representing a 38 percent premium over Genzymes share price of $49.86 on July 1, Sanofi said in a statement.
Based on analyst consensus estimates, the offer represents a multiple of 36 times Genzymes 2010 earnings per share and 20 times 2011 earnings per share, Sanofi added.
"Accordingly, the offer price takes into account the upside potential of the anticipated recovery in Genzymes performance in 2011," Sanofi said in the statement, adding that it had already secured financing for its offer.
Sanofi submitted the offer in a letter to Genzyme after several unsuccessful attempts to engage Genzymes management in discussions, the French group said.
"We remain focused on entering into constructive discussions with Genzyme in order to complete this transaction," Sanofi Chief Executive Chris Viehbacher said in the statement.
Sanofi-aventis added that it was prepared to consider all alternatives to successfully complete this transaction.
Reporting by James Regan; Editing by David Cowell
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