October 11, 2010
Today's Lex column in the FT.com has a quickie review of some of the potential defenses available to Genzyme in its fight to stave of Sanofi - the pacman defense*, the macaroni defense**, the poison pill, scorched earth tactics, and then the sandbag. Lex doesn't seem to think much of Genzyme's options.
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Definitions from the Latham Book of Jargon:
* Pac-Man Strategy: in a hostile takeover situation, when a takeover Target company launches a tender offer for the company that is trying to acquire it.
** Macaroni Defense: a tactic used by a corporation that is the Target of a hostile takeover bid in which the Target issues a large number of Bonds that must be redeemed at a higher value if the company is acquired. In the event of a takeover, the debt will expand, just as macaroni expands when cooking.
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