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CVRs become popular as deal sweeteners

Contingent value rights have been revived because they offer a way to bridge the gap between what buyers and sellers think represents fair value for an asset

After nine months arguing over the value of Genzyme, the US biotech company finally succumbed to the advances of French pharmaceutical giant Sanofi and agreed a $20bn deal.

The clincher for Genzyme's board was an improved $74 per share cash offer plus a contingent value right that gives investors the opportunity to share in any upside of Lemtrada, its treatment for multiple sclerosis.

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