According to a Reuters story posted in the PharmaGossip blog, Sanofi has hired a search firm to vet possible candidates for Genzyme's board should its acquisition attempt come down to a proxy battle.
Over the weekend, Sanofi extended its tender offer for Genzyme for the second time until February 15th. This is one day before nominations can be made to Genzyme's board.
The two companies have been in discussion about the use of contingent value rights (CVR), an extra fee shareholders will receive if Genzyme's experimental multiple sclerosis treatment Lemtrada hits certain targets.
"Although discussions have continued over the past two weeks and have included commercial teams and executives of both Sanofi-Aventis and Genzyme, there remain significant differences on the potential CVR and value of Sanofi-Aventis's offer. There is no guarantee that the parties will come to an agreement," Sanofi said in a statement.
Most analysts still expect Sanofi to raise its cash bid to $71-$72 per share range with a CVR valued at up to an additional $5 per share. But it is clear that Sanofi is lining up its options for a possible proxy battle should it be necessary.
Posted by Bruce Lehr Jan 25th 2011.