Genzyme case
docx
keyboard_arrow_up
School
Erie Institute Of Technology *
*We aren’t endorsed by this school
Course
104
Subject
Law
Date
Nov 24, 2024
Type
docx
Pages
3
Uploaded by muriukik221
1
Genzyme Case
Student Name
Institutional Affiliation
Course Number: Course Title
Instructor
Due Date
2
Genzyme Case
The Genzyme case and other recent high-profile cross-shareholder activism incidents
show that activist shareholders are beginning to influence public companies’ management
decision. These activities are new, as shareholder activism was typically seen as a way for
smaller investors to hold large companies accountable. But with the rise of globalized and
interconnected corporations, it is no longer effective for large shareholders like Carl Icahn or
Dan Loeb to set their goals independently from those of the target company. Although corporate
governance is becoming more collaborative in some cases, activist shareholders still have
significant power over how a company is run by exerting their influence on the CEO and Board
of Directors ("Sanofi-aventis’ tender offer for GENZYME case solution and analysis, HBR case
study solution & analysis of Harvard case studies," 2016). There have been many cases of
activist shareholders influencing a company’s management and policies, but the Genzyme case is
one of the most notable examples.
Activism can be defined as a method of influencing corporate decisions through the use
of publicity and activism. This kind of activism is motivated by a specific set of interests, such as
environmentalism or animal rights, as opposed to a more general set of interests, like profits for
shareholders
(Mahabier & Atteh, 2020). The difference between these two kinds of activism can
be seen in the various corporations that have been targeted. For instance, the animal testing
corporation InnoPharmica is more motivated by profits than by animal rights because it
continues to test on animals despite its strong criticism from activists. In Genzyme case, Carl
Icahn and other activists were motivated by a specific set of interests, as they supported the
shareholders’ best interest and not that of the company. This is why they tried to influence the
management.
3
References
Mahabier, A., & Atteh, F. (2020).
2020 Activist Investor Report
.
https://corpgov.law.harvard.edu/2020/08/01/2020-activist-investor-report/#4
.
Sanofi-aventis’ tender offer for GENZYME case solution and analysis, HBR case study solution
& analysis of Harvard case studies
. (2016, November 3).
thecasesolutions.
https://www.thecasesolutions.com/sanofi-aventis-tender-
offer-for-genzyme-2-69574
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help