Millennium tops Genzyme offer for AnorMED
Last Updated: Tuesday, September 26, 2006 | 11:15 AM ET
CBC News
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Vancouver-based AnorMED Inc. is urging its shareholders to accept a takeover bid from Millennium Pharmaceuticals that's 40 per cent higher than an unsolicited offer from Genzyme Corp.
On Tuesday, Massachusetts-based Millennium announced it would pay $12 US a share in cash for each share of AnorMED, valuing the company at $515 million US. The Genzyme offer of late August was worth $8.55 US a share.
"In the three weeks since the launch of the unsolicited tender offer by Genzyme, we have conducted an open, timely, competitive process to consider strategic alternatives that would provide greater value for shareholders than the unsolicited tender offer by Genzyme," said AnorMED CEO Kenneth Galbraith in a statement.
AnorMED three-month trading
"We believe that the planned tender offer by Millennium will provide our shareholders with an immediate and certain value for their investment in AnorMED," he said.
AnorMED's chairman and its largest shareholder — who together own 21.5 per cent of AnorMED's stock — have agreed to tender their shares to the Millennium bid.
Even before the Millennium offer, AnorMED shares had been trading well above the $8.55 US bid from Genzyme. The shares closed on the Nasdaq at $9.95 US on Monday, showing that investors believed that a higher bid would eventually emerge for AnorMED.
Investors think bidding war isn't over
It appeared Tuesday that investors think the bidding war is not over. When AnorMED stock began trading on Tuesday, the shares jumped $2.77 to $12.72 US in Nasdaq trading — six per cent more than the offer. On the TSX, the shares soared $3.14 to $14.24.
AnorMED is a biopharmaceutical company that specializes in the development and commercialization of new products in the treatment of cancer and blood disorders.
Its lead product in the development pipeline is Mozobil, a stem-cell transplant drug.
AnorMED said last month it hopes to release data next spring from two Phase 3 studies of Mozobil in cancer patients undergoing stem-cell transplantation. It also hopes to file for marketing approval in the U.S. by the end of next year.
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