GENZ finds a nickel

Unsatisfactory alternatives can be the mother of invention. Genzyme Corp. had planned to use common stock to pay $39 million of the $49 million it owes its Neozyme I shareholders for the rights to two technologies. But, unhappy with the current stock price, and sensitive to the dilution issuing more shares would entail, CFO David McLachlan came up with a creative alternative that will allow GENZ to earn money at the same time it pays NEOZ shareholders entirely in cash.

McLachlan's solution: "I'm going to borrow $39 million for one year." GENZ can borrow the funds at a fixed rate of below 4 percent, while its own investments are earning 5 percent. That will add about 5 cents to GENZ's EPS for the next year...