Eye on Bioenvision

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?

Comments

[adam_shay]

It interesting that you made this entry on BIVN. Did you see my story in the Boston Globe yesterday? It was about my web site rejectgenzymetenderoff... The small shareholders are not happy with the current offer!!!

[thomast2]

Dear Adam, I totally understand and I am not happy about the offer either. Thank you so much for doing this. Somehow the small shareholder voices should be heard. I will comment more on my private blog at VesTopia.com which I am one of the Investment Directors on this, since I don't want to comment on my private transaction on the public blog about BIVN. But there is a reason why I commented on BIVN yesterday which is related to my own trade.

I didn't know about the article on Boston Globe but I just read it this morning by reading your comment. Great publicity and exposure to you and your cause. Good luck at the proxy fight. And thank you very much for your comment.