Bioenvision (BIVN) has received lots of publicity lately. First of all, it was featured in a recent Business Week article under Inside Wall Street. The article has promoted the stock by mentioning all the big shot investors and funds investing in this firm, such as George Soros, SCO Financial Group, Federated Investor, Lehman Brothers, and Pequot Capital Management. One of them even mentioned that this stock can go as high as $20 when it was traded only at $4.50.
Very interestingly, only a couple days later after the BW article, Genzyme made a $5.6 cash offer to BIVN, which was approved by the BIVN board and some large investors but opposed by others. The stock has traded as high as $5.80 since, meaning that the market is expecting that Genzyme will sweeten its offer.
Should shareholders hold on to the shares and wait to see if Genzyme sweetens its offer? Should they get out now at the current price higher than the $5.60 offer price, leave the proxy fight behind and possibly also leave money on the table? And if shareholders select to hold on to the shares, should they tender their shares?