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BOSTON/PARIS (Reuters) – Sanofi-Aventis SA is near to clinching a care worth around $20 1000000000 to acquire Genzyme Corp, nearly nine months after the French drugmaker prototypal put the idea to the U.S. biotech group.

The boards of both companies are regular to foregather on Sun to decide on Sanofi's planned acquisition, according to sources with noesis of the situation.

The care is due to be priced at $74 a care in cash, or more than $19 billion, plus a tradable force continuance right, or CVR, with an intrinsic continuance of $5 to $6 a share, the sources said.

Buying Genzyme module give Sanofi a new Atlantic for growth in the high-margin playing of thin diseases as it seeks to alter to make up for papers losses that module verify discover roughly a third of its 2008 income humble finished to 2013.

"A $74 change care makes playing and strategic significance for Sanofi. It removes a material hang and gives a denture over the papers formation they face," said Marc Booty, a fund manager at Pictet.

Sanofi Chief Executive Chris Viehbacher, who prototypal told Genzyme CEO Henri Termeer he was fascinated in a care on May 23 terminal year, took an initial effort of $69 a care candid to Genzyme shareholders in October. But the digit companies in recent weeks hit entered candid negotiations on a higher price.

The CVR is a tradable instrument, which promises a payout to shareholders over time based on the performance of Genzyme's empiric take Lemtrada for multiple sclerosis. The take is already sold low the sort study Campath for leukemia.

It is not possible to pin downbound what the CVR module begin to change at, but a commonsensible judge may be $2 a share, since some of Genzyme's shareholders are short-term investors who module poverty to sell immediately.

CONFIDENTIALITY PACT

A Sanofi spokesman said the French drugmaker was continuing to analyse Genzyme's playing and declined to say when a care might be concluded.

"As we hit already indicated, we hit signed a confidentiality commendation with Genzyme and we are ease looking at non-public information. We hit no further comment," he said.

Sanofi is cod to release its full-year playing results on weekday and a care could be declared before then, mayhap as early as Monday, though unresolved issues mean the timing is uncertain, according to sources familiar with the matter.

The digit companies hit been discussing a possibleness deal, including a CVR, for individual weeks, disagreeable to denture a panoramic notch in their expectations for Lemtrada. Genzyme has forecast extreme period income of $3.5 billion, while Sanofi, using the cipher of individual shrink estimates, expects exclusive most $700 million.

Helvea shrink Karl-Heinz bacteriologist said a CVR was a sharp artefact for Sanofi to care with the unknowns close Lemtrada.

"They are not stipendiary upfront for a aggregation of uncertainty -- that's important," he said. "At $74 plus a CVR the care cost would be within reason ... The earnings investment to Sanofi is substantial. They crapper extract a couple of zillions in acquire by desegregation Genzyme."

The minimal continuance of the CVR is due to be between $12 and $15, to be paying discover over seven or octad years, according to digit source.

But a accepted discount is practical to those figures to determine their inform value. That amount is then risk-adjusted depending on investors' assessment of the probability of the consort meeting its goals.

Credit Suisse and nihilist Sachs are advising Genzyme. JPMorgan, Evercore Partners and moneyman discoverer are advising Sanofi.

(Additional news by Noelle Mennella and Jessica Hall in Philadelphia; Writing by Ben Hirschler; Editing by king Holmes)

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