This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Genzyme in Icahn's Sights

Stocks in this article: GENZ

(Genzyme stock quotes refreshed in this update.)

CAMBRIDGE, Mass. ( TheStreet) -- Carl Icahn is taking the fight to Genzyme (GENZ) in a bid to wrest control of the biotech company from embattled Chairman and CEO Henri Termeer.

The billionaire investor has formally notified Genzyme that he will seek shareholder approval to seat four handpicked directors, including himself, on the company's board. TheStreet was the first to report Icahn's plans early Monday, which were later confirmed by Genzyme in a statement.

Icahn, whose proxy fight with Genzyme was widely anticipated, is expected to make his intentions known publicly later Monday in a filing with the Securities and Exchange Commission.

"Our actions demonstrate that we are open and responsive to shareholder input, and we welcome a constructive dialogue with Mr. Icahn," said Termeer, in a statement.

Henri Termeer
Henri Termeer, CEO of Genzyme

Genzyme shares recently were down 27 cents, or 0.5%, to $55.70.

Genzyme is trying to recover from the worst operational crisis in the company's history. Sloppy manufacturing and quality control problems at Genzyme's Boston facility over the past year led to shortages of two key drugs, Cerezyme and Fabrazyme, used to treat rare genetic diseases. As a result, Genzyme's 2009 earnings barely grew and revenue fell. Last week, the company forecast 2010 adjusted earnings guidance below Wall Street's expectations.

Genzyme shares lost 26% of their value in 2009, sinking to a five-year low. The stock slump fueled investor anger and calls for a management shakeup, most notably the resignation of CEO Termeer, who has led the company for the past 25 years.

Termeer has stated publicly that he has no intention of resigning and that he is the right person to lead Genzyme's turnaround.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs