This morning Reuters lays out its thoughts on next steps for the Genzyme-Sanofi situation. They see 3 scenarios as most likley:
- Sit down and negotiate
- Hostile bid by Sanofi
- Genzyme seeks White Knight
In evaluating these alternatives, the possibility of a White Knight entering the picture is considerd remote. The Hostile effort is still considered to be unattractive to Sanofi management as they likely need to get much more information on Genzyme's manufacturing troubles in the due diligence process. This will not be very transparent if a hostile takeover is launched.
That leaves good old fashion - talking. Sanofi will likely need to sweeten its offer to at least $70 per share to get Termeer and Team to sit down with them in earnest. Then the horse trading begins.
Posted by Bruce Lehr September 4th 2010.