L'Oreal to keep control over Sanofi-Synthelabo

Following the will-they-won't-they saga concerning Elf-Aquitaine'sintentions for its majority stake in Sanofi-Synthelabo (Marketletter September 27), the company's other main shareholder, L'Oreal SA, says it fully intends to keep control that the pact banning Elf from selling more than 15.4% in the firm is "immutable" until December 2,2004.

In a statement, L'Oreal said that since Elf's board recognized TotalFina's bid as friendly, "the shareholder pact cannot be rescinded by Elf-Aquitaine. L'Oreal intends to maintain it until expiry in order to maintain stable control over Sanofi-Synthelabo."

The announcement by L'Oreal follows increasing specualtion that both it and Elf might be willing to sell Sanofi-Synthelabo to a private bidder. In recent weeks, rumors have been circulating that the recently-merged French firm could be the target of a takeover bid by Switzerland's Roche.