MORNING COFFEE

Sanofi-Anventis Sends Letter to Genzyme.  Sanofi-Anventis (SNY) reiterated their offer to buy Genzyme (GENZ) for $69.00 per share or $18.5 billion in a letter yesterday.  CEO Henri Termeer said the letter was sent “after several unsuccessful attempts to engage Genzyme's management in discussions." Sanofi has also hinted it may opt for a hostile bid if Genzyme doesn’t respond.

Disney & Time Warner Nearing Agreement. Walt Disney (DIS) and Time Warner Cable (TWC) are nearing an agreement over programming fees.  The agreement needs to be reached by midnight on Thursday to prevent a threatened TV blackout. If a deal isn't reached Time Warner Cable subscribers will lose access to Disney, ESPN and ABC.

Downgrades

Lockheed Martin (LMT): Argus lowered their rating from Buy to Hold.

Intel (INTC): Charter Equity lowered their rating from Buy to Market Perform.

AutoZone (AZO): Morgan Joseph lowered their rating from Buy to Hold.

Coverage Reiterated/Price Target Changed

Weyerhaeuser (WY): RBC Capital Markets reiterated their Sector Perform rating and lowered their target price from $45.00 to $18.00.

Intel (INTC): RBC Capital Markets reiterated their Outperform rating and lowered their target price from $30.00 to $26.00.

·         Futures: Dow 0.0%. S&P +0.1%. Nasdaq +0.2%. Crude -0.4% to $74.88. Gold -0.05% to $1237.30.

·         Asia: Japan +1.8% to 9149. Hong Kong +0.7% to 20737. China +1.6% to 2653. India +0.2% to 18032.

·         Europe: London closed. Paris -0.5%. Frankfurt 0.0%.