Millenium Ends Its Bid For AnorMED, Leaving Genzyme On Top

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Includes: ANOR, MLNM, SNY
by: H.S. Ayoub

Millenium Pharmaceuticals (MLNM) announced today that it will not increase its bid for Canadian biotech AnorMED (ANOR) following a bid by Genzyme (GENZ) for $13.50 a share.

Genzyme started the jostling for AnorMED when it offered $8.50 a share. That bid was quickly rejected by AnorMED's board as it courted Millenium to step in and make an offer, which it did, at $13.

Genzyme reviewed Millenium's second offer and increased its own to the current $13.50.

Millenium's decision not to increase its offer a second time opens the door for other companies to take over AnorMED, if Genzyme's offer is not accepted.

Millenium also expects to recieve a payment of almost $20 million for breaking talks with AnorMED.

AnorMED's stem cell mobilizer Mozobil is at the heart of these takeover talks.