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AnorMED Inc.
Challenge: Our client, AnorMED Inc., received
an unsolicitated takeover bid from Genzyme Corporation valuing
the company at US$380 million or US$8.55 per share. The offer
represented a 70% premium over AnorMED's US$5.02 closing price
on the day immediately prior to the announcement. Our client
rejected the bid as inadequate in that it "fails to recognize
the company's ability to create value for shareholders by achieving
clinical and commercial milestones for its lead product Mozobil
in stem-cell transplants and as a chemosensitizer, and its second
clinical stage product, AMD070 for the treatment of HIV."
Solution: Kingsdale's role was to carry the message of AnorMED's
Board regarding the inadequacy of the Genzyme offer and to work
with our client and the other members of their advisory team
to develop our strategic approach. Kingsdale aggressively reached
out to retail and institutional shareholders asking that they
not tender to the Genzyme offer. While this was happening, AnorMED
searched for a white knight.
Result:
Kingsdale was successful in convincing AnorMED shareholders
not to tender into the original Genzyme bid. This bought sufficient
time for AnorMED to attract a friendly superior bid from Millennium
Pharmaceuticals. Genzyme eventually outbid Millennium with the
AnorMED Board eventually supporting a substantially higher bid
from Genzyme totaling US$580 million or US$13.50 per share.
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