Bioenvision shareholder reiterates disapproval of company's deal with Genzyme

By Lisa Kerner

Charlotte, N.C., June 27 - Bioenvision, Inc. investors led by Steven H. Rouhandeh and SCO Securities LLC once again objected to the company's proposed acquisition by Genzyme Corp. by writing a letter to the board. The letter was included as part of a schedule 13D filing with the Securities and Exchange Commission.

"As we have said in previous letters to you, SCO does not believe that Genzyme's offer of $5.60 per share reflects the true value of Bioenvision and the clofarabine franchise. As such, SCO will not be tendering its Bioenvision shares," the letter stated.

According to the investors, since the offer was announced on May 29, more than 40 million shares have traded above the $5.60 offer price and "numerous lawsuits have been filed against Bioenvision and others in response to the offer."

The reporting persons also took issue with the fairness opinion, calling it "one of the shortest and least detailed fairness opinions that we've ever read," the letter, signed by Rouhandeh, said.

Rouhandeh reiterated his disappointment with and lack of support for the Genzyme offer in a similar letter to the board on June 5. He beneficially owns 7,209,331 shares, or 13.4%, of the company's outstanding stock, according to the SEC filing.

Bioenvision's acquisition by Genzyme is valued at about $345 million and is expected to close in July. The deal gives Genzyme exclusive, worldwide rights to clofarabine, which was co-developed by Bioenvision and Genzyme for the treatment of acute lymphoblastic leukemia.

Both companies' boards have approved the deal. Bioenvision executive officers, directors and shareholders holding approximately 20% of the company's shares have entered into agreements in support of the transaction, according to a news release.

Bioenvision is a New York biopharmaceutical company, and Genzyme is a Cambridge, Mass.-based biotechnology company.

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