Baird Said a Genzyme (GENZ) Takeover Of BioMarin (BMRN) Makes Sense To Them

Analysts at Robert W. Baird said a merger of Genzyme Corp. (Nasdaq: GENZ) and BioMarin Pharmaceutical Inc. (Nasdaq: BMRN) makes sense to them.

In fact, the firm said, while the notion of a GENZ/BMRN combination isn't new, a combination could be substantially beneficial to GENZ – even when valuing BMRN shares as high as $30 per share.

The firm said a deal isn't part of their 'Buy' thesis for either name, but "after doing the math, we increasingly like this idea – for the benefit of both shareholder bases."

The firm said a deal would be highly accretive for GENZ beginning 2010. They said, "Even valuing BMRN shares as high as $30, GENZ could see accretion of $0.05, $0.23 and $0.40 for 2010-2012 respectively."

The firm has an Outperform rating and $76 price target on GENZ and an Outperform rating and $21 price target on BMRN.

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