CEO Says Genzyme for Sale
CEO Says Genzyme For Sale [Boston Herald]
From Boston Herald (MA) (September 1, 2010)
Sept. 01--Henri Termeer, the longtime chief executive of Genzyme
Corp., announced yesterday that there’s a "high probability"
Sanofi-Aventis will buy his company -- if the French drug giant ups
its starting bid of $69 a share.
Termeer, who many believe doesn’t want to sell Genzyme, made clear yesterday that the Cambridge-based biotech is for sale, but he was adamant that Sanofi has to offer more.
"The company is not for sale at $69 a share," Termeer said yesterday. "A deal will only get done when the strategic value of the company is properly recognized. . . . You have to have a reasonable starting point for negotiations."
Still, he said that both Genzyme, the largest Hub-based biotechnology firm, and Sanofi have "strategic needs."
Sanofi faces the loss of 20 percent of its revenue by 2013 as generic competition erodes sales. Genzyme, whose drugs for rare genetic diseases generated sales in 2009 of $4.5 billion, is working its way through a manufacturing crisis that has lead to shortages of two of its biggest-selling products.
Termeer, who has butted heads with activist shareholders who have questioned Genzyme management, said major investors feel in a "very unanimous way" that Genzyme should hold out for a higher price. Some say the value could be $75 or higher.
Termeer suggested a threatened hostile takeover attempt by Sanofi was "unlikely to occur" -- and indicated such a move would hurt relationships should the two companies eventually combine.
"We need each other too much in terms of future value," he said.
One major shareholder signaled yesterday that it’s firmly behind selling the company at the right price.
The head of Matrix Asset Advisers, which owns about 320,000 shares, urged Genzyme’s board in a letter to "aggressively pursue the possible sale" of Genzyme.
"It is clear the $69-a-share bid is simply a starting point for negotiations, and that (Sanofi’s) appraisal can move meaningfully higher," wrote Matrix’s David Katz.
Herald wire services contributed to this report.
To see more of the Boston Herald or to subscribe to the newspaper, go to http://www.bostonherald.com.
Copyright (c) 2010, Boston Herald
Distributed by McClatchy-Tribune Information Services.
For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail services@mctinfoservices.com, or call 866-280-5210 (outside the United States, call +1 312-222-4544)
Posted: September 2010
