Serono "finding it hard to find a buyer"

Leading UK biotechnology firm Serono, which put up a "for sale" notice last year (Marketletter November 21, 2005), with a price tag thought to have been about $15.0 billion, seems to be having difficulties finding a buyer at the right price and may instead go for an acquisition. The company is 62%-owned by the Bertarelli family, with Ernesto Bertarelli its chief executive.

That is the view of some industry observers, following the Switzerland-based firm's announcement of plans to seek shareholder approval to increase its share capital by creating 7,618,860 new bearer shares worth 7.3 billion Swiss francs ($5.72 billion). The news sent Serono's share price tumbling as much as 9% on the morning the news was released, March 31.

The statement from the firm said: "the strategic review announced in November 2005 is on-going and could result in a sale of, merger of, or one or more acquisitions by the company. To provide the company with financing capacity to pursue such alternatives, the board of directors of Serono propose to increase the authorized share capital at the forthcoming annual shareholders' meeting. There is no assurance that any transaction will be consummated."