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August 10, 2010
All Quiet on the Genzyme Front?
Posted by Derek
Notice how quiet it's gotten on the Sanofi-Aventis / Genzyme story? News of the preliminary discussions leaked, then for the first few days we had constant reports from "people familiar with the negotiations". Now, zilch.
It's enough to make me think that someone tracked down the person (or persons) responsible for all the chatter and gave them some good reasons to be quiet. We'll see if the flow of gossip resumes or not. . .
Comments (6)
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1. anon on August 10, 2010 10:16 AM writes...
Simply, part of the courtship. The dance is on.
Permalink to Comment2. Recovering Analyst on August 10, 2010 10:37 AM writes...
I'm in biz dev - for an acquisition of this magnitude, only the most senior people in both companies would know about the proposed transaction, so anything "leaked" would have been done on purpose. I doubt these senior persons in the know would have been muzzled. It's quite possible that absolutely nothing is happening or there's nothing new in the discussions. It also might indicate that after all the initial posturing, they're moving into serious discussions, possibly even doing due diligence. My guess is that even with the high profile nature of this acquisition, we won't see anything definitive for at least 2 months - it takes a long time and a lot of work to do proper due diligence on someone as big as Genzyme.
Permalink to Comment3. Data Police on August 10, 2010 11:29 AM writes...
I think most of it is coming from activist investors
Permalink to Comment4. Hap on August 10, 2010 12:25 PM writes...
Wouldn't activist investors be looking to leak more though? Silence probably isn't in their best interest, but a feeding frenzy probably is.
Perhaps they're trying to keep their upper management quiet - the frenzy might help, by raising the value of their stock, but since management might be out on the street afterwards, some might have reason to try to torpedo the deal. The company has more leverage against its employees than its investors, as well.
Permalink to Comment5. Anonymous on August 10, 2010 2:16 PM writes...
@Hap
"....but since management might be out on the street afterwards, some might have reason to try to torpedo the deal."
Genzyme's CEO gets a $22 million 'change-of-control' payment if the deal goes through. All the other top guys are getting about $5-6 million each.
Perhaps I'm naive but I don't think the employees or shareholders of Genzyme should count on the management worrying about incremental changes in stock price to influence their actions at this juncture.
Permalink to Comment6. Denise on August 10, 2010 3:47 PM writes...
It is vacation time in France....
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