Genzyme Affirms Purchase Price for Bioenvision at $5.60 Per Outstanding Share
September 27 2007 - 8:45AM
PR Newswire (US)
CAMBRIDGE, Mass., Sept. 27 /PRNewswire-FirstCall/ -- Genzyme
Corporation (NASDAQ:GENZ) confirmed today that it will not change
its purchase price for Bioenvision (NASDAQ:BIVN) at $5.60 in cash
per outstanding common share as set forth in the merger agreement
between the two companies. Genzyme already owns approximately 22
percent of the outstanding shares of Bioenvision common stock on an
as-converted basis, including 100 percent of its preferred stock
that carry a unique set of rights and privileges. "$5.60 per share
is our best and final offer," stated Mark J. Enyedy, president of
Genzyme Oncology, a business unit of Genzyme Corporation. "It
reflects the full and fair value for Bioenvision common stock based
on our extensive due diligence on the company, and our detailed
understanding of the risks associated with, and investment required
for, the further development of clofarabine. We now all know that
clofarabine will not be approved in adult AML in the European Union
until 2008, at the earliest." Genzyme added that the merger
agreement represents the culmination of a thorough auction process
undertaken by the Bioenvision Board of Directors, during which more
than 20 companies were contacted regarding a potential sale of the
company. No other offer was made prior to or following the
announcement of the merger agreement with Genzyme. Genzyme also
noted several of the risks associated with Bioenvision remaining an
independent public company have been made public through company
disclosures in recent weeks, including the need to finance more
than $100 million in operating losses through 2011. In addition,
since the merger agreement was signed in May, capital market
conditions have deteriorated and Bioenvision has become subject to
several potentially costly lawsuits. Genzyme today sent a letter to
the Board of Directors of Bioenvision confirming its position on
price and the factors supporting this position. Genzyme included
that letter as an exhibit to an amendment to the Schedule 13D it
has filed with the Securities and Exchange Commission in connection
with its ownership of Bioenvision capital stock. The merger
agreement received unanimous support from the Bioenvision board of
directors. Earlier this month, the company mailed a proxy statement
to its shareholders detailing the rationale for the merger and
other material disclosures. A special meeting of Bioenvision's
shareholders to vote on the merger with Genzyme is scheduled for
next Thursday, October 4. Should Genzyme not garner the majority
support from shareholders for this merger, it is committed to
playing an active and constructive role as a significant long- term
shareholder of Bioenvision. About Genzyme One of the world's
leading biotechnology companies, Genzyme is dedicated to making a
major positive impact on the lives of people with serious diseases.
Since 1981, the company has grown from a small start-up to a
diversified enterprise with more than 9,500 employees in locations
spanning the globe and 2006 revenues of $3.2 billion. In 2007,
Genzyme was chosen to receive the National Medal of Technology, the
highest honor awarded by the President of the United States for
technological innovation. In 2006 and 2007, Genzyme was selected by
FORTUNE as one of the "100 Best Companies to Work for" in the
United States. With many established products and services helping
patients in nearly 90 countries, Genzyme is a leader in the effort
to develop and apply the most advanced technologies in the life
sciences. The company's products and services are focused on rare
inherited disorders, kidney disease, orthopaedics, cancer,
transplant, and diagnostic testing. Genzyme's commitment to
innovation continues today with a substantial development program
focused on these fields, as well as immune disease, infectious
disease, and other areas of unmet medical need. Genzyme(R) is a
registered trademark of Genzyme Corporation. All rights reserved.
Genzyme's press releases and other company information are
available at http://www.genzyme.com/ and by calling Genzyme's
investor information line at 1-800-905-4369 within the United
States, or 1-678-999-4572 outside the United States. Investors
Media Catherine Forte Maria Cantor (617) 768-6881 (617) 768-6690
DATASOURCE: Genzyme Corporation CONTACT: Investors, Catherine
Forte, +1-617-768-6881, or Media, Maria Cantor, +1-617-768-6690,
both of Genzyme Corporation Web site: http://www.genzyme.com/
Company News On-Call: http://www.prnewswire.com/comp/113803.html
Copyright
Bioenvision (NASDAQ:BIVN)
Historical Stock Chart
From Apr 2024 to May 2024
Bioenvision (NASDAQ:BIVN)
Historical Stock Chart
From May 2023 to May 2024