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Dealbook: It's time to bargain directly with shareholders, or not?

Chilly-Mazarin Sanofi-Aventis

Even as BHP Billiton kicks off a roadshow to convince investors who are already holding out for a better price for Potash than the big $130 tab, HP has outstepped Dell into hostile territory for 3PAR with a $27 bid and investors again seem to be committed to getting a better deal for the company.

In a similar and yet not so public  dealmaking saga, Sanofi aventis has also decided against upping its Genzyme bid from $69 just minutes ago and will also woo investors for the open offer price that still costs them $18.8 billion for the Biotech major that will seemingly complement the sanofi pipeline and build sanofi aventis into the global leader with Novartis Glaxo and Pfizer, apparently though not affecting the industry’s archaic high cost structures which have been its bane for the last decade or so.

Genentech at San Francisco Pride Parade

Genzyme shares have ridden 26% higher on the news and investors include veritable bad news Carl Icahn and Ralph Whitworth. Sanofi has been sendng pocket change on Indian acquisitions as well buying API and generics player Shantha BT in Hyderabad for $800m, cheaper compared to Genzyme’s “hard-to-copy” appeal despite manufacturing hiccups at Mass. GSK was an early bidder but moved out when the price target was breached by the Investors on board and the Sanofi approach. GSK is the only player making concerted efforts to keep cost structures at a new lower level and grow in emerging markets despite the industry’s obvious new directions in Asia and Africa.  Indian Biotech majors have been hoping for breakthrough in volumes as the debate thins out and their API offerings and generics get integrated in the US and Europe markets on and off since the nineties.

Sanofi-Aventis

Genzyme’s west coast peers include Genentech (DNA) and Biotech (BIIB). The industry research niche’s have also succeeded in taking stem cell  research molecules to clinical trials this month (Emerging Healthcare Solutions Inc) and have been signing profit participation deals thru 2005  till date to take their research successes to the larger market in PE like exits from high cost experimental research these hard to copy drugs entail

2 comments on “Dealbook: It's time to bargain directly with shareholders, or not?

  1. Pingback: Tweets that mention Dealbook: It’s time to bargain directly with shareholders, or not? | The Banking and Strategy Initiative -- Topsy.com

  2. Maribel Theaker
    June 14, 2011

    Thanks a ton for taking a few minutes to line this all out for people like us. This kind of write-up ended up being really helpful if you ask me.

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This entry was posted on August 29, 2010 by in Financial Markets.

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