Genzyme Shareholders Approve Merger, New Biosurgery Tracking Stock - TheStreet

Genzyme Shareholders Approve Merger, New Biosurgery Tracking Stock

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Biotechnology company

Genzyme General

(GENZ)

said its shareholders have approved a merger with

Biomatrix

(BXM)

that will create a new division called Genzyme Biosurgery and establish a tracking stock the company said will reflect the value of the biosurgery market.

The Cambridge, Mass.-based company said it formed the Genzyme Biosurgery stock by combining Biomatrix with two units for which the company has established tracking stocks,

Genzyme Tissue Repair

(GZTR)

and

Genzyme Surgical Products

(GZSP)

.

According to terms of the deal, which should be completed by Dec. 18, shareholders of Genzyme Tissue Repair will receive 0.3352 shares of Genzyme Biosurgery stock for each of their shares, while shareholders of Genzyme Surgical Products will get 0.6060 shares of Genzyme Biosurgery stock for each of their shares.

The company also said Biomatrix shareholders will receive a combination of cash and Genzyme Biosurgery stock in exchange for their Biomatrix shares. The final amount of the deal paid to Biomatrix shareholders will be announced when the deal closes.

Goldman Sachs

initiated coverage on Genzyme today as market perform. Shares of the company closed down $1.13, or 1.18%, to $93.81 on the

Nasdaq

.