The French drugs group Sanofi-Synthelabo was expected to launch its formal public bid for French-German rival Aventis yesterday, while leaving the closing date for the offer open for now.
Aventis shareholders may either sell their stock for 60.43 euros per share, or exchange six Aventis shares for five of Sanofi plus 69 euros (US$54 dollars) in cash.
The offer values Aventis at 48 billion euros (US$61 billion).
Sanofi will only go ahead with the hostile takeover bid if it is able to buy at least half of the total 802 million Aventis shares.
The offer's closing date depends on a decision by the US Federal Trade Commission (FTC) and on the outcome of current legal action in Paris.
Aventis is contesting the offer before the Paris court of appeal, which has several months to hand down a ruling.
The Franco-German group has spurned Sanofi's bid as "laughable," saying the price offered is far too low.
"They need us, we don't need them," Aventis president Igor Landau said.
He has warned Aventis shareholders that Sanofi, a smaller company currently making strong profits, wants them to bear the burden of "serious uncertainties" surrounding the predator's future prospects and research portfolio.
Sanofi chief executive Jean-Francois Dehecq said the hostile takeover of the bigger company would "speed up the growth of major products, combine marketing and commercial forces and maximize the launch of the two groups' products."
On Monday, Sanofi refused to sweeten its bid, but tried to woo Aventis shareholders by flexing its financial strength.
Sanofi posted a 17.7 percent increase in net profit to 2.076 billion euros last year from 1.759 billion euros, beating analysts' forecasts that ranged from 2.025 billion euros to 2.033 billion euros.
Analysts had forecast that Sanofi would unveil glowing results and dazzling prospects for future growth.
Looking ahead, Sanofi said it expected sales growth this year to match last year's 8.1 percent despite the unfavorable impact of currency fluctuations.
Turning to its products, Sanofi said it recorded "very positive results" from clinical trials of its anti-smoking and anti-obesity drug Rimonabant, heart treatment Dronedarone and sleep drug Ambien.
On Monday Sanofi-Synthelabo shares dipped 0.09 percent to 55.30 euros while Aventis rose 1.22 percent to 62.15 on a Paris market that closed with a gain of 0.79 percent.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from