Sanofi-Aventis tells takeover target Genzyme to clarify potential board actions; Genzyme sticks to its guns on value

French drug major Sanofi-Aventis (Euronext: SAN), likely keeping the doors open to its acquisition ambition, says it has sent a letter to Genzyme (Nasdaq: GENZ), the target of its $69 a share/$18.5 billion hostile takeover target (The Pharma Letters passim), calling on the company to clarify its position on a number of potential Board actions raised in Genzyme's Schedule 14D-9, and not use defensive tactics to bloc a transaction.

Genzyme has consistently stated that the Sanofi-Aventis significantly offer undervalues the company and, just last month, argued the case for a $89 a share valuation and has claimed that the Paris-based firm had indicated it was prepared to make a higher offer, which Sanofi has denied (TPL October 25).

Sanofi-Aventis chief executive Christopher Viehbacher’s letter to the US firm’s president and CEO, Henri Termeer, also notes that it is encouraged by Genzyme's decision to "probe and evaluate alternatives" including contacting third parties but observes that the French company has not been contacted by Genzyme or its advisors. Sanofi-Aventis continues to remain interested in working with Genzyme on a constructive basis and is committed to a mutually agreeable transaction.