Genzyme to Swap for Tracking Shares

Genzyme Corp.(GENZ Quote) will bring in the tracking stocks it used to raise money for its cancer and biosurgery divisions, saying they've outlived their usefulness in a stalled market for new equity.

Genzyme will exchange shares in itself for shares of Genzyme Molecular Oncology(GZMO Quote) and Genzyme Biosursurgery(GZBX Quote) at a roughly 30% premium to recent market prices. The exchange ratio implies valuations that are well below both stocks' 52-week highs, however.

"While tracking stocks have enabled us to create tremendous value in the past, current financial market conditions have reduced their ability to raise needed capital," the parent company said in a statement. ...