Genzyme Holds Serve Ball Back in Sanofi's Court at $89 per Share

Genzyme returned Sanofi's offer of $69 per share with a little math of their own this past week.  Genzyme management cited a new estimate of their 2011 earnings picture  at a bullish $4.30 to $4.60 per share --that was about 20% higher than most analysts have figured.  

Genzyme then noted that that Sanofi had fixed its bid by using the algorithm 20x expected 2011 earnings to arrive at the $69 per share figure.  Now, with Genzyme's new earnings estimate, and sticking with the 20x assumption, Genzyme says it would be worth $89 per share or $4.2 B more than Sanofi's original $18.5 B offer.

Sanofi's turn to return. so far, the French drugmaker has indicated that Genzyme's prognositcations are optimistic.  More to come I'm sure.

 

 

Posted by Bruce Lehr October 25th 2010.

Comments

[bigredbruce]

Sanofi says they see noo substance in Genzyme presentation and do NOT sweeten their offer.
http://www.silobreaker.com/sanofi-hears-no-substance-from-genzyme-539-am-5_2263824789032402977