Interestingly, shares of MDVN are slightly lower for the day. Clearly, by the statement issued by Sanofi, they intend to go straight to shareholders and make the case for their bid. Insiders hold a little more than 1% of the company, so they’re vulnerable to a shareholder revolt.
My best guess: SNY sweetens the bid and MDVN succumbs to the pressure and agrees to be acquired.
If you enjoy the content at iBankCoin, please follow us on TwitterThe co states that combining with Medivation represents a compelling strategic and financial opportunity to drive immediate and certain value for Medivation’s shareholders while benefiting patients and both companies’ respective stakeholders. Sanofi’s all-cash proposal represents over a 50 percent premium to Medivation’s two-month volume weighted average trading price (VWAP) prior to takeover rumors. Sanofi is a disciplined acquirer and has a strong acquisition track-record. While to date Medivation has chosen not to enter into discussions regarding this value-creating transaction, Sanofi remains committed to the combination and looks forward to engaging directly with Medivation shareholders with regard to our proposal.
Sanofi affirms that while to date Medivation has chosen not to enter into discussions regarding this value-creating transaction, Sanofi remains committed to the combination and looks forward to engaging directly with Medivation shareholders with regard to our proposal.