Novartis calls in Lazard and CSFB for Aventis merger talks

Novartis calls in Lazard and CSFB for Aventis merger talks

David Rothnie

12 Mar 2004

Credit Suisse First Boston and Lazard are advising Novartis, the Swiss pharmaceuticals company, which is understood to be putting the finishing touches to a "white knight" bid for Aventis, the Franco-German pharmaceuticals company.

According to banking sources, Novartis could launch an offer next week, in order to scupper the existing €46bn hostile bid for Aventis by Sanofi-Synthélabo, the French pharmaceuticals firm.

CSFB is a long-term adviser and lender to Novartis, while Lazard is a leading adviser to Pfizer, the the world's biggest pharmaceutical firm.

Lazard's loyalty to Pfizer cost it a role in advising Sanofi on its bid for Aventis. Francois Polge de Combret, a partner at Lazard in Paris, advised Sanofi throughout the 1990s, and Lazard was an adviser to Sanofi until the company abandoned plans for a friendly offer and decided to go hostile for Aventis.

At this point, Sanofi and Lazard agreed the bank would be conflicted if Pfizer wanted to enter the fray. Lazard's appointment by Novartis confirms Pfizer is unlikely to get involved.

Polge de Combret is now understood to be leading the Lazard's team at Novartis. CSFB and Novartis refused to comment on the appointments. Lazard was unavailable for comment.

On Friday, Novartis issed a statement at the request of CMF, the French regulator, regarding a possible bid for Aventis. Novartis said: "Responding to a request by AMF, the French market authority, Novartis AG confirms they are exploring the feasibility of a combination with Aventis. No decision has been taken yet whether or not to pursue such a transaction."

Banking sources added that Novartis is in talks with a number of banks about financing a bid. In addition to CSFB, lenders to Novartis include Citigroup, Deutsche Bank, JP Morgan and Wachovia.

Of these, Citigroup and JP Morgan are currently advising the Kuwait Petroleum Company, which is the biggest shareholder in Aventis.

BNP Paribas, Merrill Lynch and French boutique Phillip Villin conseil are advising Sanofi, while Goldman Sachs, Morgan Stanley and Rothschild are advising Aventis.

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