Kuwait Petroleum evaluating Sanofi's new Aventis offer

KUWAIT - State-run Kuwait Petroleum Corp, the largest shareholder in Aventis, said yesterday it was evaluating a new stock-and-cash offer from France's Sanofi-Synthelabo for the Franco-German drugmaker.


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Published: Tue 27 Apr 2004, 9:53 PM

Last updated: Mon 20 Nov 2023, 3:41 PM

"KPC is currently evaluating the improved offer and will continue to carefully monitor the market's reaction and its impact on valuation," Fadel Jerman, media manager at KPC, said in a statement sent to Reuters.

So far, the market has reacted negatively to news of the offer, which was accepted by Aventis at the weekend following pressure from the French government, in a move that shut out rival suitor Novartis.

As a result, shares in Sanofi have fallen more than seven per cent since the deal was unveiled on Monday, lopping some 2.8 billion euros ($3.33 billion) off the value of Sanofi's new offer, currently worth around 50.6 billion euros.

KPC said its 13.5 per cent stake was worth 6.85 billion euros based on the offer value of 63.37 euros per Aventis share implied by Monday's Sanofi share price.

At a meeting of the Aventis supervisory board on Sunday, KPC, which has a seat, abstained from voting for the Aventis-Sanofi tie-up.

There were no further details in the statement from KPC, a government-owned company in charge of the oil sector in Opec nation Kuwait. Sanofi had been under mounting pressure to sweeten its offer following a decision last week by Novartis, acting as a "white knight", to take up an invitation from Aventis to start talks.

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