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The Sanofi-Aventis Acquisition of Genzym...

Matos, Pedro, Aley...

Case

The Sanofi-Aventis Acquisition of Genzyme: Contingent Value Rights

Matos, Pedro; Aleyev, Dmitriy; Xu, Chong

F-1715 | Published October 22, 2014 | 16 pages Case

Collection: Darden School of Business

Product Details

This case is designed for MBA students in M&A or derivatives courses. In January 2011, Sanofi-Aventis was finalizing its offer terms for acquiring Genzyme. The M&A valuation disputes were about the market potential of alemtuzumab, a drug in Genzyme’s pipeline, and how quickly Genzyme could resolve some of its manufacturing issues. To bridge the gap in their estimates, advisers had suggested an up-front cash payment and a contingent value right (CVR). Was a CVR the magical solution to bridging the valuation gap?

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