S&P May Pare Credit Ratings On Sanofi-Aventis
From Associated Press (September 7, 2010)
NEW YORK -- Standard & Poor’s Ratings Services may cut its credit ratings on Sanofi-Aventis, which is trying to buy the biotechnology company Genzyme.
The agency placed its ‘AA-’ long-term credit rating and ‘A-1+’ short-term rating on credit watch negative Tuesday, meaning that it may reduce them to reflect the debt that would come with buying out Genzyme Corp. It said that such a deal would reduce its credit standing at least through 2011.
The Paris drug maker offered $18.5 billion, or $69 per share, for Genzyme on Aug. 29. Genzyme rejected the offer the next day.
Standard & Poor’s placed Genzyme’s ratings on CreditWatch with positive implications.
Shares of Sanofi-Aventis SA dipped 39 cents to $29.81 in afternoon trading, while Genzyme stock rose 20 cents to $70.69.
Posted: September 2010