Genzyme TakeOver and Merger Rumors

Filed in Business, Featured, Local News by on July 28, 2010 1 Comment

genzymefacilityIt’s no secret that Genzyme has been struggling for a while due to its recurring plant problems.  A few days ago rumors surfaced that the large French Drug Maker Sanofi-Aventis had approached Genzyme to buy it out.  The debate is still on whether a merger will take place and we can only hope when and if it does Cambridge and Massachusetts will not suffer too many job losses.

The company has been a big part of the employment picture in Cambridge and other parts of Massachusetts for a long time.  Sanofi-Aventis is a pretty large company and has been on somewhat of an acquisition spree.  Outside stock analysts see the possible takeover as something of a “graceful exit” for a management team that has had it’s hands full with the like of Carl ICahn on top of drug manufacturing problems.  With the dust settling on some of the turmoil of the last year it may be the right time to sell Genzyme for the current management team.  Mr. ICahn has also indicated that his hope to fix Genzyme may involve some form of sale.

It appears this possible acquisition has some way to go though.  With Massachusetts locations in Cambridge, Allston, Framingham, Waltham and Westborough there will definitely be those watching these negotiations with their fingers crossed.  The stock did respond favorably to this news though.  Rumor or not we will definitely be watching…

8-9-2010 Update

At the moment it seems that both Genzyme and Sanofi-Aventis have conflicting ideas over the value of Genzyme.  They are yet to offer the outside world any updates and the offer letter has yet to be made public.

I found a good article published by Reuters where they discuss how both staff and investors are still left in the dark.  There even appears to be a press release regarding the Genzyme Board being under investigation if they accept a bid that is considered undervaluing the intrinsic value of Genzyme.  They seem to suggest that Genzyme should be shopped around before settling on a buyer.

At this point I would agree given the following quote from the Reuter’s article:

Genzyme employees won’t be reassured by the “Smiling Killer” tag that some Sanofi staff have given German-Canadian Chief Executive Chris Viehbacher over his plans to shed 4,000 positions by 2013 at the French group.

The story continues…

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  1. CambridgeLocal says:

    Update: 8-3-2010 Formal offer letter was sent. Genzyme looking for a higher price per share offer. The story continues…

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