Zentiva recommends shareholders reject Sanofi Aventis' bid
The board of Czech generic drugs maker Zentiva N.V. said it has recommended that its shareholders reject a takeover offer from French pharmaceuticals maker Sanofi-Aventis SA.
By Agencies |
PRAGUE: The board of Czech generic drugs maker Zentiva N.V. said Friday it has recommended that its shareholders reject a takeover offer from French pharmaceuticals maker Sanofi-Aventis SA.
On July 11, Sanofi-Aventis, which already owns 24.9 per cent of Zentiva, made a cash offer of 1,050 Czech koruna (euro45.37; US$71.91) a share for the rest. That would value the Czech company at 40 billion koruna (euro1.73 billion; US$2.74 billion).
Zentiva's board said in a statement on Friday that the offer was ``not in the best interests of Zentiva, its shareholders and all its other stakeholders.''
``The Sanofi offer fails to reflect the underlying value of Zentiva and its future prospects,'' the statement said.
Shares of Zentiva rose slightly to 1,123 koruna (euro48.53; US$76.92) in Prague trading shortly after noon.
Sanofi-Aventis said it had ``taken note'' of Zentiva's statement. ``Regarding our offer, we consider that it's in the best interest of shareholders and that the price proposed reflects the fair value of the company,'' said Sanofi-Aventis spokesman Jean-Marc Podevin.
The Sanofi-Aventis offer for Zentiva opened July 11 and runs until Sept. 19.
In Paris, Sanofi shares were trading up 1.77 per cent at euro45.39 (US$71.94) in early afternoon trading on Friday.
The French company, which like many drug makers has been looking to broaden its portfolio amid aging patents, cited a ``strong strategic rationale'' for the Zentiva deal and said the two companies have overlapping markets.
Two years ago, Sanofi-Aventis bought its stake in Zentiva, its first acquisition since the French company was formed out of the August 2004 takeover of Aventis by rival Sanofi-Synthelabo.
Zentiva recently rejected a 950 koruna per share takeover bid by Czech financial group PFF N.V. announced two month ago.
On July 11, Sanofi-Aventis, which already owns 24.9 per cent of Zentiva, made a cash offer of 1,050 Czech koruna (euro45.37; US$71.91) a share for the rest. That would value the Czech company at 40 billion koruna (euro1.73 billion; US$2.74 billion).
Zentiva's board said in a statement on Friday that the offer was ``not in the best interests of Zentiva, its shareholders and all its other stakeholders.''
``The Sanofi offer fails to reflect the underlying value of Zentiva and its future prospects,'' the statement said.
Shares of Zentiva rose slightly to 1,123 koruna (euro48.53; US$76.92) in Prague trading shortly after noon.
Sanofi-Aventis said it had ``taken note'' of Zentiva's statement. ``Regarding our offer, we consider that it's in the best interest of shareholders and that the price proposed reflects the fair value of the company,'' said Sanofi-Aventis spokesman Jean-Marc Podevin.
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The Sanofi-Aventis offer for Zentiva opened July 11 and runs until Sept. 19.
In Paris, Sanofi shares were trading up 1.77 per cent at euro45.39 (US$71.94) in early afternoon trading on Friday.
The French company, which like many drug makers has been looking to broaden its portfolio amid aging patents, cited a ``strong strategic rationale'' for the Zentiva deal and said the two companies have overlapping markets.
Two years ago, Sanofi-Aventis bought its stake in Zentiva, its first acquisition since the French company was formed out of the August 2004 takeover of Aventis by rival Sanofi-Synthelabo.
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Zentiva makes and sells generic drugs in Central and Eastern Europe, including products for pain, cardiovascular diseases and disorders of the central nervous system. In March, it agreed to buy a majority stake in the generic drug business of Turkey's Eczacibasi for euro460 million (US$729 million). Zentiva recently rejected a 950 koruna per share takeover bid by Czech financial group PFF N.V. announced two month ago.
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Sanofi-Aventis said its bid came at a 14.6 percent premium to Zentiva's closing price of 916 koruna on April 30, the last day before PPF announced its cash offer. Download
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