Genzyme Braces For Icahn Bid

Activist investor Carl Icahn has notified Genzyme that he intends to nominate himself and three others to Genzyme’s board of directors at the biotech firm’s 2010 shareholders meeting, scheduled for May 20. Genzyme says the board’s nominating and governance committee will evaluate the bid. Verin Mehta, managing member of investment advisers Mehta Partners, notes that Genzyme’s credibility was shaken following a virus contamination at its Allston, Mass., facility. “Cleaning up a rare virus in manufacturing is a challenge, but Genzyme took longer than it had initially hoped,” Mehta says. “But our view is that management has done a good job and that that will be reflected in shareholders’ votes.”