Genzyme Goes After Bioenvision Shareholder, But Denies Plan To Quash His Web Site
Make a commentBy Ed Silverman // July 23rd, 2007 // 7:50 am
The drugmaker, which two months ago launched a controversial $350 million bid for Bioenvision, last week filed court papers indicating it wants to subpoena documents belonging to a Bioenvision shareholder who created an outspoken web site that urges other shareholders to reject the deal. Genzyme also wants to depose web site creator Adam Shay, who manages a tax service in Wilmington, North Carolina.
In court papers, Genzyme says “the testimony and documents sought are relevant to the claims in (a suit brought by Bioenvision shareholders) and may lead to admissible evidence.” Shay isn’t a party to the lawsuit, though. And there’s no further indication why Genzyme is so interested in Shay. A Genzyme spokeswoman, Maria Cantor, tells Pharmalot that issuing a third-party subpoena is a “routine” part of such litigation and wouldn’t discuss “strategy or tactics.”
When pressed, however, about Shay’s free-speech rights, she denies that Genzyme is trying to shut down Shay’s web site. “It’s part of the issue, but it doesn’t involve stopping the blog. We’re not targeting the blog. The goal is not to shut down the blog. We’re not looking to squash the blog or make any claim against free speech.”
So what is Genzyme after?
Perhaps the drugmaker suspects Shay is somehow closely aligned with Steven Rouhandeh of SCO Capital Partners LLC , which owns 13 percent of Bioenvision. Rouhandeh has been extremely vocal in opposing the bid, prompting other investors to protest, and Shay posted his widely circulated opposition letter on his site. Cantor wouldn’t comment when asked whether Genzyme felt there was a potential violation of proxy soliciation rules.
For his part, Shay tells us this weekend that he has no direct connection with Rouhandeh. “You have hit on the only connection between Steve Rouhandeh and myself - we are both Bioenvision shareholders. I think that you also could say that we were also two of the most outspoken Bioenvision shareholders against the $5.60 tender offer. I am actually surprised that they are trying to call me for a deposition for this case given that I am a potential member of the class in this class action lawsuit.”