Millennium Pharma to buy AnorMedDrug developer AnorMed Inc., fighting a hostile takeover bid from U.S. biotech giant Genzyme Corp., has agreed to support a competing tender offer from Millennium Pharmaceuticals Inc. at a price of $12 (U.S.) a share. The $515-million offer represents a significant premium above Genzyme's bid of $8.55 a share, which valued AnorMed at $380-million. “We believe that the planned tender offer by Millennium will provide our shareholders with an immediate and certain value for their investment in AnorMED,” said AnorMed chairman Kenneth Galbraith. The Vancouver-based company said its board and financial advisors Goldman Sachs & C. determined that the planned Millennium offer is fair to all shareholders and will recommend its acceptance by shareholders. Mr. Galbraith said that in the three weeks since the launch of Genzyme's hostile offer, “we have conducted an open, timely, competitive process to consider strategic alternatives that would provide greater value for shareholders.” Directors previously rejected the Genzyme offer of $8.55 (U.S.) a share.Shares of AnorMed have jumped $2.70 to $12.65 on the Nasdaq Stock Market today, after trading as high as $12.98, indicating that investors are betting Genzyme or another company will attempt to outbid Millennium Pharmaceuticals' bid of $12 a share. Directors of AnorMed and its major shareholders are supporting the Millennium bid, subject to a higher competing offer. Millennium president and CEO Deborah Dunsire said AnorMed's flagship Mozobil drug is an “excellent strategic fit with Millennium's focus in hematology-oncology, where our product Velcade leads the market in treating patients with relapsed multiple myeloma.” |
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