Question
Relational Investors (RI) calculated the fundamental value of each drug in Genzyme's portfolio and pipeline. RI concluded that Genzyme's intrinsic value per share totaled $90.00,
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Relational Investors (RI) calculated the fundamental value of each drug in Genzyme's portfolio and pipeline. RI concluded that Genzyme's intrinsic value per share totaled $90.00, but the shares were trading at only $56.38 -- a discount of $33.62 (see Exhibit 4.12). Whitworth, the founder of RI, offered four recommendations to address this undervaluation.
Put yourself in Termeer's shoes and consider each of these recommendations. Which of them, if any, should Termeer agree to? Why? What actually happened to Genzyme over the next few years? (Do a little Google sleuthing!). Answer concisely and submit your Word document to this assignment drop box before midnight on September 28, 2020.
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