Genzyme CEO Would Be Insane Not to Take Sanofi's Buyout Offer
Genzyme (GENZ) CEO Henri Termeer is insane. That is the only explanation for why he is against Sanofi-Aventis (SNY) buying his company. Here's the situation:
- Sanofi is offering $70 a share for Genzyme, or $18.7 billion, which is a 42 percent premium on the stock from its position before the French drug company made its move.
- Termeer has two sets of insurgent investors on his board already. One of them is Carl Icahn, who likes to see companies get sold. They hold five seats combined.
- It was Termeer's reign -- in which he lost two of the company's monopolies -- that depressed the stock and turned Genzyme into a takeover target in the first place.
- Termeer is lucky to still have his job: Wall Street was talking about an ouster just a few months ago.
- If that doesn't sound like enough, consider that Termeer is stepping down from the company next year anyway. His views on the future of Genzyme are increasingly academic.
Sanofi is offering him a graceful way to salvage his reputation (in addition to a truckload of cash) and he's balking? One presumes this is mere posturing, and Termeer is simply hoping Sanofi will sweeten its deal to something nearer $75. (After all, we already know that Sanofi is prepared to spend $20 billion.)
Take the deal, Termeer.
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