Hapoalim Securities Expects Genzyme To Hold Out For A Higher Offer

Genzyme Corporation

used its Analyst Day to outline why it thinks the Sanofi bid is too low, but stated that it was not against a sale at an appropriate price, Hapoalim Securities reports. “We would expect Genzyme to hold out for a higher offer and due to the limited opportunities for internal growth at Sanofi, we would also expect Sanofi to eventually make a higher bid,” Hapoalim Securities writes. “While $69 per share is obviously too low for Genzyme, $89 per share is likely too high, and we would expect the two companies to eventually meet in the middle, suggesting a final offer of approximately $79 per share or 9% above current levels.” Genzyme Corporation closed Friday at $72.45.