Massachusetts-based Genzyme Corp. (NASDAQ: GENZ) and French drug maker Sanofi Aventis (NYSE: SNY) may be close to signing a merger agreement in which Sanofi is pursuing an acquisition of Genzyme for roughly $20 billion.
Sanofi first expressed interest in acquiring Genzyme back in August 2010. However, the company�s initial $69 per share offer was rejected by Genzyme�s board, which said that it undervalued the company. The two companies have since been in continued discussions and are now close to signing the deal. Sources close to the situation say that the deal could be announced within days as Sanofi continues with the due diligence process.
Sanofi may raise its offer for Genzyme from $69 to per share to around $74 per share. The acquisition of Genzyme will add rare diseases as a new growth area for Sanofi, which has been looking to diversify as patents on many of its drugs expire shortly.
The speculation that a deal may be signed shortly pushed Genzyme shares higher in today�s trading. At last check, Genzyme shares were up 1.19% to $74.27, with volume at 1.09 million in early trading. The stock reached a high of $74.35 in early trading.
Sanofi shares, meanwhile, are marginally lower in early trading today. The shares reached a low of $34.10 in early trading, and at last check, they were down 0.35% to $34.28, with volume at 701,617.
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