Wednesday, September 27, 2006

Millennium Comes to the Rescue

Genzyme’s (Ticker: GENZ) hostile take over attempt of AnorMED (Ticker: ANOR) became more interesting today. Millennium Pharmaceuticals (Ticker: MLNM) became the white knight and swooped in to save AnorMED from Genzyme. Millennium offered $12 per share ($515 million) versus Genzyme’s bid of $8.55 ($380 million) for AnorMED. I don’t think Genzyme will come in and place a higher bid. Millennium is really paying a big premium for this company and is going to eat up a big chunk of their cash. There’s no doubt that the company will have to go to the public market to raise more cash. This is a risky bet for Millennium. I hope Genzyme doesn’t enter a bidding war and just walk away from this deal. The market likes the fact that Genzyme may not complete this transaction. Take a look at the chart of Genzyme versus Millennium.


At October 01, 2006, Anonymous Steve said...

It is such a competitive industry! It will be industry if they do come back with an offer above Millenium.

At October 06, 2006, Blogger Money Turtle said...

Looks like Genzyme is getting ready to place a higher bid. I just hope they don't pay too high a price.


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