Raised Bid for Genzyme (GENZ) Could Be Coming as Sanofi (SNY) Scrounging for More Financing
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According to a report from the Wall Street Journal citing people familiar with the situation, Sanofi-Aventis (NYSE: SNY) is preparing to line up more financing as it may be considering a higher bid for Genzyme Corp. (NASDAQ: GENZ).
The report stated that the French drug maker has talked with lenders such as Citigroup Inc. (NYSE: C) and Bank of America Corp. (NYSE: BAC) to add financing to the backing it already has from JPMorgan Chase & Co. (NYSE: JPM), BNP Paribas SA and Société Générale SA.
Sanofi possibly raising its $18.5 billion bid for Genzyme may finally bring the biotechnology company to the bargaining table after months of resistance.
Sources suggests that Sanofi has tried to get Genzyme to signal a price that might entice the company's Board as Sanofi does not want to raise its bid another time only to be rejected once again.
Another issue is that if Sanofi gets Genzyme to the table, it may face a bidding war from rival companies, as the Cambridge, Massachusetts-based has stated that it would open up talks to other companies if it officially begins negotiations with Sanofi.
The two companies have disagreed on the value of the pipeline of products that Genzyme claims to have in development.
"Our hope is that we can now sit down with the board of directors and have the opportunity to present each other's views," Sanofi CEO Chris Viehbacher said last month.
Shares of Genzyme are down 5 cents to $71.55 today.
The report stated that the French drug maker has talked with lenders such as Citigroup Inc. (NYSE: C) and Bank of America Corp. (NYSE: BAC) to add financing to the backing it already has from JPMorgan Chase & Co. (NYSE: JPM), BNP Paribas SA and Société Générale SA.
Sanofi possibly raising its $18.5 billion bid for Genzyme may finally bring the biotechnology company to the bargaining table after months of resistance.
Sources suggests that Sanofi has tried to get Genzyme to signal a price that might entice the company's Board as Sanofi does not want to raise its bid another time only to be rejected once again.
Another issue is that if Sanofi gets Genzyme to the table, it may face a bidding war from rival companies, as the Cambridge, Massachusetts-based has stated that it would open up talks to other companies if it officially begins negotiations with Sanofi.
The two companies have disagreed on the value of the pipeline of products that Genzyme claims to have in development.
"Our hope is that we can now sit down with the board of directors and have the opportunity to present each other's views," Sanofi CEO Chris Viehbacher said last month.
Shares of Genzyme are down 5 cents to $71.55 today.
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