M & A Law Prof Blog

Editor: Brian JM Quinn
Boston College Law School

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Wednesday, December 1, 2010

Sanofi thinks earnout is "interesting"

Sounds like a negotiation

"A contingent value right would be a way to bridge a gap when different parties have different ideas on valuations," Sanofi Chief Financial Officer Jerome Contamine told Reuters on Wednesday.

"It's an interesting idea in principle," Contamine said, speaking on the sidelines of the FT Global Pharmaceutical and Biotechnology Conference.

Contaime says "CVR," but he means an earnout.  He's French so we forgive him.  Of course, an earnout should not replace the hard work of coming to agreement on valuation.  This should be especially true with respect to Genzyme where there is a lot of public information already out there.

-bjmq 

http://lawprofessors.typepad.com/mergers/2010/12/sanofi-thinks-earnout-is-interesting.html

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Comments

Pls forgive them - they don't know what they are doing. Especially the big transactions fail for a lot of reasons. By the way, earn outs might be difficult to arrange in this situation of a public takeover.

Posted by: IMAA | Mar 28, 2011 5:16:17 PM

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