Some Genzyme shareholders are getting antsy according to a report from Bloomberg this morning. Two have [separately] sued the company's Board of Directors in a Boston federal court asking that the Court force them to formally consider and negotiate with Sanofi over its $69 per share tender offer.
The shareholders claim that Genzyme directors are denying investors the right "to receive maximum value for their shares" in a lawsuit filed last month. Genzyme spokemen remain mum on this latest issue. Previously, the company has indicated that it will formally reply to the Sanofi offer - after legal and financial council - within 10 business day's of issuing the statement on Oct 4th. Shareholders filing suit noted that the orginal offer represented a 38% premium at the time it was made.
Other Genzyme shareholders have taken the State court route instead of pursuing through federal courts. At least three shareholders have filed suit in Massachusetts. Both plaintiffs in the federal suits are asking for class action status.
I don't know much about this area of the law but would be surprised to see court intervene at this stage by forcing negotiations to occur. I suspect they'll leave it up to the major shareholders at large to make that happen or not. See Bloomberg.
It gets more exciting every day.
Posted by Bruce Lehr October 13th 2010.
More on this story from Xconomy
http://www.xconomy.com/boston/2010/10/13/investors-suing-genzyme-over-its-handling-of-sanofis-18-5b-buyout-bid/
Posted by: bigredbruce | 10/13/2010 at 11:21 AM