ARTICLE | Strategy

Laying siege

Genzyme-sanofi standoff: Both sides may lack alternatives

September 6, 2010 7:00 AM UTC

sanofi-aventis Group made clear in its conference call last week that it's in no hurry to complete its proposed acquisition of Genzyme Corp. - with the obvious implication that time is on its side. If so, the lull provides time to consider alternative scenarios. These range from the emergence of a white knight for Genzyme to acquisitions by sanofi of other companies in the rare disease space.

Assuming Genzyme is going to be taken out, the only question is whether shareholders will get more than the $69 per share on offer, or $18.5 billion. The answer depends on whether sanofi thinks it has alternatives and whether Genzyme can find another bidder...