As expected, Sanofi-Aventis has launched a hostile takeover bid for US biotechnology firm Genzyme.
The French drugmaker is taking its 13.5 billion euro offer direct to shareholders after Genzyme management refused to negotiate.
Sanofi said it was doing that because Genzyme investors it had spoken to were frustrated with the lack of talks about a sale.
Genzyme management had said the original offer was too low.
Industry experts called the hostile takeover move logical, but believe Sanofi will have to pay more to succeed.
The market is also signalling it expects a higher price.
Genzyme’s shares are trading above Sanofi’s current offer.
Sanofi wants to buy Genzyme – which makes costly treatments for rare diseases – in order to boost it drug portfolio as sales of older Sanofi medicines decline.
So far, there is no sign of any other bidder emerging for Genzyme.