AnorMed board backs Millennium bid

The board of directors of Vancouver, Canada-based biopharmaceutical company AnorMed says shareholders should accept the $12.00 per share offer from USA-based drugmaker Millennium Pharmacuetical. The board advised that stockholders tender their holdings, including all common shares, under the bid, which expires on November 10. The firm added that the board had reached this decision based on the conclusion of its Strategic Initiative Committee, and after consultation with its legal and financial advisors.

The recommendation, which was issued in the directors circular, advises shareholders who have already tendered their holdings under the $8.55 per share offer made by Dematal Corp, a wholly-owned subsidiary of Genzyme, to withdraw their existing tenders and transfer them to the Millennium offer. The company added that, under the September 26 agreement with the US firm, it retains the right to respond to superior proposals, including any new offer which Genzyme may be involved in.

Kenneth Galbraith, chairman of the AnorMed board and interim chief executive, said: "the board has determined that the Millennium offer is fair to the holders of AnorMed common shares and that it is in the best interests of AnorMed and its shareholders."