PARIS (Reuters) – Shares in French drugmaker Sanofi fell on Monday after the company announced a $11.6 billion takeover of U.S. haemophilia treatment specialist Bioverativ, with some traders saying the price looked expensive.
Sanofi shares were down 2.3 percent in early session trading, making the stock the worst performer on France’s benchmark CAC-40 index.
Sanofi also underperformed a flat performance on the STOXX Europe 600 Healthcare index.
Sanofi has agreed to buy all of the outstanding shares of Bioverativ for $105 per share in cash, marking a premium of 64 percent to Bioverativ’s closing price on January 19.
“In that sector, you don’t get anything cheap. You’ve got to pay up. People do appear to be a bit sceptical on the price, but not overtly so,” said Terry Torrison, managing director at Monaco-based McLaren Securities.
Prime Partners’ fund manager Francois Savary took a more upbeat view of the transaction.
“In my view, it’s essentially a positive deal. It should strengthen their capacity to grow in the medium term,” said Savary, whose firm owns Sanofi shares.
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