17 Sep 2013, BioSpectrum Bureau , BioSpectrum
Singapore: Mr Chris Viehbacher, CEO, Sanofi, has highlighted that the firm will repurchase its nine percent stake in cosmetic-giant L'oreal. He pointed out that this will be a good move as Sanofi is expected to put its $12 billion holding for sale.
Mr Viehbacher further said that Sanofi had the resources to opportunistically buy back the shares and to bolt-on acquisitions that would potentially increase the company's stake in Regeneron Pharmaceuticals.
The CEO had earlier said that if L'Oreal sold its $11.73 billion (9 billion euro) stake in Sanofi, it could buy back the $30 billion (23 billion euro) stake which Nestle company holds in it. Industry analysts believe that this opportunity could be used by the drug maker to boost its earnings by repurchasing shares with cheap debts.
Mr Viehbacher also stated that Sanofi could consider raising its stake in Regeneron Pharmaceuticals up to 30 percent as it already holds about 16 percent share of the company. The company had the right under the decade-long partnership with Regeneron to increase its shares upto 30 percent.
This relationship with Regeneron has been highly productive and with passage of time the stake could be built up to 30 percent. Mr Viehbecher further said that whether or not they do so is dependent on various factors but it's a handful amount of money to use. Regeneron values about $ 27 billion in the market.