Genzyme and Sanofi-Aventis Reach an 'Agreement in Principle'

I can confirm that Genzyme, one of the world's largest biotechnology companies, and Sanofi-Aventis, a very large French pharmaceutical company, have reached a so called “agreement in principle” for a deal in which Sanofi will acquire Genzyme.

Source: Genzyme

The deal will include a contingent value right (CVR)—a type of right given to shareholders of an acquired company that ensures they receive additional benefit if a specific event occurs—and will include more cash than the current $69 a share that Sanofi is offering, according to sources close to the deal.

How much cash the deal will include could not be determined.

Sanofi has begun due diligence on Genzyme , a process that could take a couple of weeks and is often not begun until some sort of deal structure has been hammered out.