Genzyme Boosts AnorMed Bid

The takeover offer has been raised to $13.50 a share.
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AnorMed's

(ANOR)

shares were rising Tuesday after

Genzyme

(GENZ)

significantly sweetened its bid for the drugmaker.

Genzyme said it would increase its offer to $13.50 a share, valuing AnorMed at around $580 million.

The offer represents a 12.5% premium to

Millennium Pharmaceuticals'

(MLNM)

offer of $12 a share.

Previously, Genzyme made an unsolicited bid for AnorMed at $8.55 a share, but the targeted company rejected the offer, saying it was too low.

"We are confident that AnorMed's shareholders will find this all-cash offer of $13.50 per share to be a compelling one," said Henri Termeer, Genzyme's chairman and chief executive.

The offer, he continued, "also represents an attractive investment opportunity for Genzyme. With approximately $1.4 billion of cash on our balance sheet at the end of June 2006, our strong financial position enables us to complete this transaction without any need for dilutive financing."

AnorMed's shares rose 6% to $14.10, while Genzyme fell 1.9% to $68.17. Millennium was unchanged at $10.04.