Engineer

Memo No. 10 Activist Investors can do a lot of harm than you thought Topic Source: Biogen Cuts a circulate With Icahn W either Street Journal, B3, Mar 23, 2010 Yu Zhang Ca #07 Mar 23, 2010 virtuoso of the leading biotech confederation, Biogen Idec, recently reached a deal with Carl Icahn, an activist investiture guru to add two members to its board, one of whom was nominated by Mr. Icahn in January. Mr. Icahn, is a non-stranger to investors, who had been on Yahoo!s board, and was behind the rout of Jerry Young, the founding CEO of his ousted by Yahoo!s board. His plot of land plan usually is buying enough shares of a public trading come with, and then tries to find a easy divvy up of the company and make some easy bucks; whether the backing is sustainable, whats going to happen to the employees working for that company is not inwardly his consideration. Since Mr. Icahn newly discovered Biogen, he has been enchanting to split the company to two and sell to big pharmas. This kind of activities probably lead only benefit Mr.

Icahn; and as people in the biotech business know, the arranged marriage between big pharma and biotechs are most likely not a riant one. Imclone was sold to Eli Lilly & Co. in 2008 for $6.5 billion. Imclone employees had been promised that the company will stay separate as it was before the takeover; after 2 years, all of their senior and middle management have been replaced. Talking round the acquisition of Wyeth by Pfizer, Mercks takeover of Schering-Plough, none of them is without the colossal cut on both sides to please the wall lane and to make their balance sheet rosier. What happen to the pipeline, and how about the coming(prenominal) of the companies, that is up to the future CEOs to worry about. That is the M &A evil; almost as same as the activist investor, which purposely either try to sell the company or try to force the company to choke up huge chunk of profit to buy... If you want to get a full essay, order it on our website: Orderessay

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