Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Sanofi SA (ADR) (SNY) Could Challenge Johnson & Johnson (JNJ) Bid For Actelion Ltd (ALIOF)

Sanofi SA (ADR) (NYSE:SNY) could spark a fierce bidding war for Actelion Ltd (OTCMKTS:ALIOF). Johnson & Johnson (NYSE:JNJ) has already entered talks with Actelion after it sweetened its takeover offer for the company to more than $250 a share to value the Swiss biotechnology firm above $27 billion. But it has emerged that Sanofi is plotting a counterbid.

Sanofi has retained advisers to explore an Actelion Ltd (OTCMKTS:ALIOF) acquisition, and sources say it has already informally expressed its takeover interest to Actelion. However, there is no guarantee the talks will progress or a deal would be reached.

mri, doctor, physicians, display, treatment, idea, medic, experiment, pharmaceutical, patient, future, interface, laboratory, multimedia, intelligence, male, digital, scan,


Johnson & Johnson (NYSE:JNJ)’s move to boost its offer for Actelion may have been designed to cement its position as the suitable bidder, but that move can be seen attracting counterbids for Actelion.

Sanofi SA (ADR) (NYSE:SNY) is not the only major drug company that could make a counterbid for Actelion. Advisers of Actelion are reportedly reaching out to other potential buyers including Pfizer Inc. (NYSE:PFE) and Roche Holding Ltd. (ADR) (OTCMKTS:RHHBY) to see if they could be interested in making better bids for the company. Contacting other potential acquirers could put pressure on Johnson & Johnson to sweeten its offer further.

Winning The Backing Of Actelion Co-founder And CEO

Even as Johnson & Johnson and Actelion enter buyout talks, Actelion’s co-founder and CEO Jean-Paul Cloz has been reluctant to sell the company. But Cloz is likely to accept a bid that offers sufficient premium.

Besides trying to stop rival Johnson & Johnson (NYSE:JNJ) from laying its hands on Actelion, Sanofi SA (ADR) (NYSE:SNY)’s counterbid could also help the company make for the loss of Medivation to Pfizer.  After Pfizer ran away with Medivation, Sanofi promised to return to the buyout market if a compelling opportunity arose.  Actelion is seen as that compelling opportunity.

Follow Sanofi Aventis (NYSE:SNY)
Trade (NYSE:SNY) Now!

Actelion Valuations Disqualifies Novartis

Though Actelion could also fit in the Novartis AG (NYSE:NVS) portfolio, the company said it is currently focused on buyouts that do not go beyond $5 billion.

Shares of Actelion shot up 1.4% to $208.82 in the last session. The stock has risen more than 51% so far in 2016.

Follow Johnson & Johnson (NYSE:JNJ)
Trade (NYSE:JNJ) Now!

Note: This article is written by Andy Parker and originally published at Market Exclusive.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.