Strained Peas,Strained Profits?

The top brass at Swiss drugmaker Sandoz Ltd. have long drooled over Gerber Products Co.'s fat margins and huge, 73% U.S. market share. So in late April, when word got out that investment bankers Goldman, Sachs & Co. and Wasserstein, Perella & Co. were quietly auctioning the baby-food maker off, Sandoz executives quickly cooked up a $3.7 billion offer. Just as quickly, on May 21, Gerber's board of directors met in Chicago to approve the deal.

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