MORNING COFFEE

Sanofi Goes Hostile. Sanofi-Aventis (SNY) has launched an $18.5 billion hostile takeover offer for Genzyme (GENZ).  Sanofi’s tender offer is for $69.00 and expires Dec. 10^th. Sanofi CEO Chris Viehbacher said he saw "no particular reason to bid more" and expects the offer to be successful.

Verizon To Issue Refunds. Verizon (VZ) will issue a refund to around 15 million customers, in the amounts of $2-6 each, for incorrectly billing subscribers for data packages they didn't use. The refunds will cost the company roughly $50 million. The FCC has been looking into the issue and said it may seek additional penalties over the unauthorized charges.

Upgrades

Watson Pharmaceutical (WPI): Argus raised their rating from Hold to Buy and placed a target price of $51.00 on the company.

Downgrades

Advance Auto (AAP): Stifel Nicolaus lowered their rating from Buy to Hold.

AOL (AOL): The Benchmark Company lowered their rating from Buy to Hold and placed a target price of $25.00 on the company.

Coverage Initiated

Apple (AAPL): Ticonderoga initiated coverage with a Buy rating and target price of $430.00.

Coverage Reiterated/Price Target Changed

RF Micro Device (RFMD): Northland Securities reiterated their Outperform rating and raised their target price from $6.50 to $7.00.

Blackstone (BX): Oppenheimer reiterated their Outperform rating and lowered their target price from $20.00 to $17.00.

KKR (KKR): Oppenheimer reiterated their Outperform rating and raised their target price from $14.00 to $15.00.

AT&T (T): Auriga U.S.A reiterated their Hold rating and raised their target price from $26.00 to $29.00.

·         Futures: Dow -0.3%. S&P -0.4%. Nasdaq -0.3%. Crude -0.7% to $80.99. Gold -0.1% to $1316.90.

·         Asia: Japan -0.3% to 9381. Hong Kong +1.2% to 22619. China +1.7% to 2656. India +0.1% to 20476.

·         Europe: London -0.4%. Paris -1.1%. Frankfurt -1.0%.