Solvay tanked in the markets today after its CFO, Bernard de Laguiche, told analysts that the company has not yet been approached about a sale of its pharmaceuticals business.

Yikes. This is in sharp contrast — a 180 actually — to what Solvay said last month, and bizarre given they tried to quell media frenzy/rumors in a public statement to its employees. Laguiche’s comments ended up sending the stock down 8% before recovering to close down 5% at EUR 61.79.

It gets better: Laguiche then said to analysts that it is holding talks with third parties as part of the strategic review.

So wtf? What does that mean? I guess they’re talking to people, but they had to make the effort. At least that’s how we read it.

Fortis analyst Mark van der Geest said the market misinterpreted Laguiche’s comments:

“This is not about who is contacting who. We think they will sell the pharmaceuticals business. The only thing that makes sense is to sell the pharma unit as one business.”

Of note, we posted last month that Abbott or Sanofi would be the likely suitors for the unit, but we recently came across a JP Morgan note from April 17th that puts Sanofi or Takeda at the top. The note is from UK-based analyst Heidi Vesterinen who covers JPM European Chemicals:

“We continue to view Sanofi-Aventis and Takeda as potential buyers, considering their strategic fit, balance sheet health and interest in pursing medium-sized targets…and recent management comments on their willingness to make medium-sized acquisitions. For Japanese player Takeda, in particular, we also highlight that the recent appreciation of the yen (+22% vs E yoy) may enhance the attraction of any potential deal.”

Vesterinen also noted that Takeda is actively seeking acquisitions, especially in Europe.

Thoughts???

Image from moonlightblue

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