The case is set for the students of MBA from corporate finance. The chairman and CEO of Genzyme, a company from the top-five biotechnological companies, get to know about a tender offer for Genzyme in October 2010. The CEO of Sanofi-Aventis, a large French pharmaceutical company, send this letter in which he showed his intentions to commence this tender offer.
Sanofi-Aventis's Tender Offer for Genzyme Case Solution case study solution
The company accomplishes the success through its current drug portfolio and it has new drugs in the company’s pipeline, thus the Genzyme’s CEO, Henri Termeer, felt that the offer undervalued his company. Termeer and his team from finance conducted various valuation analyses, such as discounted cash flow (DCF) in order to determine Genzyme’s fundamental value. The CEO has to formulate the response to the offer, which he has to present at a board meeting.