Case Name :      Sanofi-Aventis’s Tender Offer for Genzyme

Authors :           Kenneth Eades, Pedro Matos, Dmitriy Aleyev, Chong Xu

Source :             Darden School of Business

Case ID :           UV6874

Discipline :        Finance

Case Length :    29 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

This case is designed to be part of an MBA corporate finance class. In October 2010, Henri Termeer, the chairman and CEO of Genzyme (a top-five biotechnology company), received a letter from the CEO of Sanofi-Aventis (a large French pharmaceutical company) announcing its intention to commence a tender offer for Genzyme. Termeer thought the offer undervalued Genzyme given the number of promising new drugs in the company’s pipeline and the success of its current drug portfolio. To estimate Genzyme’s fundamental value, Termeer and his finance team would need to conduct a discounted cash flow (DCF) and other valuation analyses. Termeer needed to be well prepared for the board meeting during which the response to the offer would be formulated.