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.
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.
In addition, work on the CVR is said to be complex, given the nature of that security.