Biotech Values

[DewDiligence]

Sanofentis?

[In spite of today’s news, a combination of Sanofi and Aventis seems all but inevitable in due course (as does a Novartis-Roche merger).]

http://biz.yahoo.com/ap/040119/eu_fin_france_sanofi_aventis_4.html

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Report: L'Oreal blocked Sanofi bid for Aventis

Monday January 19, 8:53 am ET

PARIS (AP) -- Plans by French pharmaceutical company Sanofi-Synthelabo SA to launch a hostile bid for rival Aventis SA were blocked by L'Oreal, one of is own major shareholders, French newspaper Les Echos reported Monday.

Detailed plans to launch a bid for Aventis were drawn up with the backing of oil company Total, which holds about 23 percent of Sanofi, the financial daily said, citing sources close to the discussions.

But cosmetics company L'Oreal, which holds 19.5 percent of Sanofi's capital, blocked the move because it would have diluted its holding to about 10 percent and weakened its influence on the combined entity, the paper said.

Aventis, Total and L'Oreal declined to comment on the report.

Together, L'Oreal and Total control a majority of voting rights in Sanofi.

Months of rumors about the likelihood of a tie-up between Aventis and Sanofi culminated in intense market speculation Friday that saw Aventis shares rise 8 percent and Sanofi's by 6.5 percent in turbulent trading, until the AMF market authority asked the companies to intervene.

Both shares then fell after both Sanofi and Aventis issued statements declaring there were no negotiations under way, but the stocks nevertheless maintained respective gains of 3.65 percent and 1.6 percent on the day.

The terms of the Sanofi statement on Friday did not, however, rule out a hostile bid. The company could not immediately be reached for comment Monday.
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