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Genzyme Corporation, the world's third-largest biotech firm yesterday launched a fierce defense against the hostile takeover proposal from Sanofi Aventis by saying that the company was worth around $22.7 billion and not the $18.5-billion the French drug maker had offered in late August. Sanofi had launched a hostile$18.5-billion all-cash takeover bid for Genzyme on 29 August 2010, offering $69 per share in cash, representing a 38-per cent premium over Genzyme's share price of $49.86 on 1 July 2010. (See: Sanofi-Aventis reveals $18.5-billion offer for Genzyme) The board of Genzyme had rejected the opportunistic offer as too low and has refused to engage in discussions with the French pharmaceutical giant. Genzyme told investors yesterday at its conference in New York that the company was worth $4.2 billion more or $89 per share, valuing the company at $22.7 billion and not the $69 per share or $18.5 billion offered by Sanofi on 29 August 2010. Leading the attack against the Paris-based Sanofi, Henri Termeer, CEO of Genzyme said he was "not against the sale when recognizing the value of the corporation." "Our board is unanimous in its view that the Sanofi-Aventis offer does not approach the real value of the company, nor does it reflect our financial recovery, the achievement of manufacturing and product-supply milestones, and the increasingly recognized commercial potential for alemtuzumab," he said.
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