The company has rejected a tender offer from Genzyme (GENZ) for more than $12 a share, and has reiterated its recommendation to its shareholders to accept the $12 offer from Millenium Pharmaceuticals (MLNM).
This is Genzyme's second offer, as it dangled $8.55 a share earlier, but AnorMED's board was not biting.
Genzyme's second offer is not final however. The company still has to review AnorMED's non-public data and other information. So the offer could be raised.
This is a surprising development, since many thought Millenium was offering too much. But even with Genzyme's large market cap and cash holdings, Millenium is in a better financial position to afford this takeover.
Millenium has over $600 million in cash and only about $170 million in debt. Genzyme on the other hand owes more than it holds in cash.