Sanofi Antitrust Filing On Regeneron (REGN) Lights Up Rumor Mill

February 11, 2013 10:02 AM EST
The biotech rumor mill is in overdrive Monday after Regeneron Pharmaceuticals (NASDAQ: REGN) disclosed that it received an antitrust notification from Sanofi (NYSE: SNY) stating that it intends to acquire Common Stock of Regeneron in the open market, or through other transactions. Sanofi stake in Regeneron will be above $500 million, triggering the Hart-Scott-Rodino Antitrust Improvements Act of 1976 notification.

Given the nature of the news, Regeneron halted its stock before distributing the news.

Some see the overture by Sanofi as an indication that it sought, or seeks to acquire the entire company. Possibly, already having a hostile bid rejected.

In addition to the antitrust notification, under an Investor Agreement between Regeneron and Sanofi dated as of December 20, 2007, as amended, Sanofi is bound by certain "standstill" provisions including an agreement not to acquire more than 30% of the outstanding shares of Regeneron's class A stock and common stock.

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