No, it is not. Chris Viehbacher, the pattern of Sanofi-Aventis, raise the pressure, the leaders of Genzyme remain inflexible. Not matter for the American Society of biotechnology to purchase at the price proposed by the French group. PAS question, even, to initiate any negotiation that would lead to a slightly higher price.
A penalty interest of Sanofi-Aventis formalized Sunday night after weeks of rumours, the Genzyme Board met to consider the French offer. His verdict: 100 negative. A unanimous administrators rejected the proposal. Laboratory "is not prepared to engage in negotiations to merge with Sanofi based" of 18.5 billion (EUR 14.5 billion) on the table, wrote CEO of Genzyme, Henri Termeer, in a letter to the French group unveiled yesterday. His eyes, this "opportunistic" offer presents "an unrealistic starting price that greatly undervalues company." Sanofi-Aventis was ready to consider a better price, but only in real negotiations, said Henri Termeer. A door that Genzyme did not want to open.
For Chris Viehbacher, the path of the friendly reconciliation with Genzyme he preferred so far seems pigeons. Public rendered letters these past hours showed that Sanofi-Aventis first played velvet paw. In recent months the Habs group carried out "several attempts to engage in discussions with the leadership team of Genzyme." Without success. July 29, he then sent a letter with a formal offer to 69 dollars per share. New refusal.
At the foot of the wall
"Following our repeated requests, you have only consented to a meeting between our respective financial advice limited", writes Chris Viehbacher. This brief meeting, last week, has not released the situation. And on Sunday night, or increase in the price, even the directors representing the most critical shareholders, such as Carl Icahn, voted against the French offer. At present, Sanofi-Aventis is found at the foot of the wall. Logically, the group, which made its public discussions to speak directly to the shareholders of Genzyme, should launch a hostile takeover bid in good and due form.
The rationale of Chris Viehbacher is ready. The price According to him, "is not realistic to be described as unrealistic. 69 Dollars per title, the offer presents a premium of 38 over the course before the first rumours. It is equivalent to 36 times the profits of Genzyme expected this year, and 20 times those of 2011, account in light of anticipated business recovery. Multiple relatively high, even though some biotech companies are sold in the past at prices representing more than 90 times their profits.
The pattern of Sanofi means even less to overpay its target that it is not in the best shape. Genzyme faces problems of production whose resolution may ask another three to four years. "They are not out of the Inn", summarized yesterday Chris Viehbacher. And structurally, Genzyme "has a cost base high, with many subsidiaries around the world, without the critical mass".
As many points on which Sanofi-Aventis considers power assist meaningfully to Genzyme, while leaving the company a "voluntarily". The OPA hostile, yet do not imminent. "We are not in the Emergency Department", has reaffirmed yesterday Chris Viehbacher, which seems hardly to believe in the arrival of a White Knight. "The number of groups that were able to put on the table $ 18.5 billion is rather limited", he said. A way to leave despite a last chance for dialogue.
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