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August 27, 2010
Sanofi-Aventis and Genzyme: Walking Away?
Posted by Derek
Here's a roundup of the latest reports on the potential Genzyme takeover. For one thing, it looks as if people on the inside are talking again, after a good period of silence. And for another, it looks as if Sanofi is applying the pressure: no deal above $70/share.
Either Genzyme's board agrees to entertain such an offer, or they get to explain to the shareholders why they think it's just too low. Sanofi-Aventis, for its part, may well be actually thinking about walking away, which is a move that I'd applaud. Not only do I not like most big mergers in this business, I've also never liked the way these deals take on a momentum of their own. Going through with some transaction because, well, we've started doing it and now things are just sort of rolling along, y'know, is a terrible idea. It's the sort of reasoning that vacuum cleaner salesmen and used-car dealers try to encourage. Oh, and big impressive investment banks, too.
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1. Pav on August 27, 2010 9:17 AM writes...
Sanofi needs this deal given their current lack of growth prospects. Whats the upside on walking versus going hostile?
Permalink to Comment2. horrible on August 27, 2010 10:23 AM writes...
I believe that these are strategic leaks on both sides. Sanofi lets out that there are some BOD members that are unhappy with any deal and Genzyme is leaking that they won't consider anything below 80.
It's like USA-USSR communications during the cold war: posturing in the board room and communicating through the press.
Permalink to Comment3. ex-Pfizerite on August 27, 2010 11:53 AM writes...
Everyone needs to remember that Genzyme has very serious manufacturing/FDA problems that Genzyme's management seems unable to fix
Permalink to Comment4. genz watcher on August 27, 2010 6:22 PM writes...
Genzyme hoisted itself on it own petard. They should take 70 . . . and like it.
Permalink to Comment5. Anonym on August 29, 2010 5:09 PM writes...
$18.5B offer made according to the Globe http://www.boston.com/news/local/breaking_news/2010/08/sanofi-aventis_1.html
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