Sanofi lining more funds to up bid for Genzyme: Report

French drug-maker Sanofi Aventis is considering an increase in its $18.5-billion bid for US-based biotechnology firm Genzyme Corp and is in the process of lining up more funds, according to a media report.

Citing people familiar with the situation, the Wall Street Journal said: "French drug-maker Sanofi-Aventis SA is lining up more financing, as it contemplates raising its $18.5-billion bid for Genzyme Corp."

The daily quoted its sources as saying "Sanofi recently approached big lenders, such as Citigroup Inc and Bank of America, about funding an offer that already has backing from JPMorgan Chase & Co and BNP Paribas."

Last month, Genzyme had rejected the $18.5-billion buyout offer from the drug major, saying the proposal "undervalues" the company.

Sanofi-Aventis has a significant presence in India and employs over 1,800 people in the country.

The company hopes a higher offer could bring Genzyme to the negotiating table after months of resistance, sources said in the report.

However, Sanofi is unsure about how much it needs to raise its opening offer of $69 a share to persuade Genzyme for due diligence, the report added.

Sanofi has asked the company to quote a price that would be high enough to spur the biotech company to start talks, the WSJ reported.