Seeking Alpha

Anthony Alfidi's  Instablog

Anthony Alfidi
Send Message
Anthony J. Alfidi is the founder and CEO of Alfidi Capital, a research firm in San Francisco, California. Alfidi Capital publishes free financial research with honesty and humor. Mr. Alfidi holds a Bachelor's degree in human resource management from the University of Notre Dame (cum laude) and... More
My company:
Alfidi Capital
My blog:
Alfidi Capital Blog
  • Sanofi Offers To Buy Genzyme  0 comments
    Aug 29, 2010 11:06 PM | about stocks: SNY, SNY
    I guess general economic worries aren't slowing down merger mania, at least not yet.  There's big action coming in Big Pharma:

    Sanofi-Aventis SA said it is offering to buy Genzyme Corp. for $69 a share, or about $18.5 billion in cash.

    Cash bids are always nice to see.  Paying $69 per share for GENZ isn't much of a premium over last Friday's closing price of $67.62, so perhaps Sanofi-Aventis isn't expecting any competing bidders. 

    A quick glance at GENZ's stats shows an enterprise value very close to its market value.  Bidders often go for a target whose enterprise value is far below its market cap.  Its ROE and EPS are both currently negative, so Sanofi-Aventis (NYSE:SNY) may see some hidden value here that's lost in the fundamentals.  Paying 20x EPS is a heck of a premium when your earnings have gone negative for two quarters.  Does GENZ have something in its pipeline that can help Sanofi regain ground lost to generics?  Time will tell. 

    Disclosure: No positions
Back To Anthony Alfidi's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.