US biotech firm Genzyme has rejected Sanofi-Aventis’ 14.5 billion euro offer as too low.
That came after Sanofi Chief Executive Chris Viehbacher hinting he could make a hostile takeover bid.
Genzyme said it was “not prepared to engage in merger negotiations based upon an opportunistic proposal with an unrealistic starting price that dramatically undervalues the company.”
Genzyme’s CEO Henri Termeer complained that Sanofi’s proposal showed no improvement in price since Viehbacher first wrote to him in July and the offer failed to form the basis for talks.
On Sunday Viehbacher said: “We want to show that we are determined and serious, without being threatening straightaway. Quite some time can go by yet,” Viehbacher said in an interview.
The CEO added that he had disclosed Sanofi’s non-binding offer to give Genzyme shareholders a chance to see the “significant shareholder value and compelling strategic fit inherent in a combination of the two companies.”
Genzyme rejects Sanofi-Aventis bid