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.
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