Genzyme (GENZ) Laughs at Sanofi's $69/Share Offer, Fishes For a Higher One
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The day after Sanofi-aventis (NYSE: SNY) went public with its $18.5 billion cash takeover offer for Genzyme (Nasdaq: GENZ), valuing shares at $69 each, the board of Genzyme responded saying it "dramatically undervalues" the company.
Genzyme said the new letter from Sanofi provides no new information and no improvement in price. Genzyme board said they are not prepared to engage in merger negotiations based upon "an opportunistic proposal with an unrealistic starting price."
After closing at $67.62 on Friday, shares of Genzyme are trading at $70.05 this morning on hopes for a higher bid.
Sanofi's takeover approach was widely known by the market since reports first surfaced on July 23, 2010.
Sanofi-aventis made the non-binding offer on July 29, 2010 and reiterated the offer Sunday, after several unsuccessful attempts to engage Genzyme's management in talks.
In its letter back to Sanofi, Genzyme's Henri Termeer fishes for a a higher offer saying "you and your advisors claim you are willing to pay more but that you are unwilling to 'bid against yourself'."
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Genzyme said the new letter from Sanofi provides no new information and no improvement in price. Genzyme board said they are not prepared to engage in merger negotiations based upon "an opportunistic proposal with an unrealistic starting price."
After closing at $67.62 on Friday, shares of Genzyme are trading at $70.05 this morning on hopes for a higher bid.
Sanofi's takeover approach was widely known by the market since reports first surfaced on July 23, 2010.
Sanofi-aventis made the non-binding offer on July 29, 2010 and reiterated the offer Sunday, after several unsuccessful attempts to engage Genzyme's management in talks.
In its letter back to Sanofi, Genzyme's Henri Termeer fishes for a a higher offer saying "you and your advisors claim you are willing to pay more but that you are unwilling to 'bid against yourself'."
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