Sanofi Makes Hostile Bid for Aventis

Sanofi Makes Hostile Bid for Aventis
Mon January 26, 2004 01:11 PM ET




By Noelle Mennella and Caroline Jacobs
PARIS (Reuters) - France's Sanofi-Synthelabo SA launched a 47.8-billion-euro ($60.16 billion) hostile bid for larger rival Aventis SA on Monday in a move to create the world's third-largest pharmaceutical maker.

Aventis rejected the stock-and-cash offer, which it said undervalued the company, and investors signaled it fell short of a knock-out blow.

Nonetheless, many analysts and shareholders say a tie-up between the two firms is now only a matter of time.

Sanofi's bid follows weeks of merger speculation that lifted shares in both firms as investors welcomed the idea of cutting costs, combining sales forces and pooling drug pipelines.

The deal would create a French drug industry champion with annual sales of about 25 billion euros, a market value of more than $100 billion and the number three spot in the global league table behind Pfizer Inc and GlaxoSmithKline Plc.

"This is a warning shot across the bows. This is not necessarily the final offer," said Marc Booty, a pharmaceuticals analyst with Commerzbank in London.

http://www.reuters.com/financeNewsArticle.jhtml?type=businessNews&storyID=4209948