Although the offer isn't much more than Friday's close, it is 38% higher than GENZ's July 1 close. This is when speculation cropped up about a potential buyout offer from SNY. GENZ turned down the offer, noting that SNY was undervaluing the company.
In fact, according to the Associated Press, GENZ's CEO told SNY that GENZ's board is "not prepared to engage" in negotiations with an "unrealistic" starting price. SNY is trying to take advantage of some problems GENZ has had with the manufacturing of Cerezyme and Fabrazyme -- two of the company's key drugs.
SNY's problem is that shares of GENZ have recovered from their own problem. This sure makes it look like SNY is trying to swoop in and acquire GENZ at an unfairly valued price, but that wasn't the case. Comparing the price to the July 1 offer, SNY brought a good offer to the table. The good news for GENZ is that it had confidence in its ability to emerge from its problems, and the confidence has paid off.
In pre-market trading GENZ has advanced past the $70 level. Considering GENZ told SNY that the offer was an "opportunistic takeover proposal," I don't see the deal going through anytime soon. Of course, it was the rumor of SNY's takeover that helped push GENZ higher.