Medivation Inc MDVN has rejected a hostile takeover bid by Sanofi SA (ADR) SNY offering $58 per share in cash with contingent value rights of $3 per share for Talazoparib. It is believed that a disagreement over the cancer treatment drug value is holding up the deal.
According to a report from Credit Suisse, Medivation has shifted its focus from preventing a hostile takeover toward a potential sale of the corporation.
"We anticipate the board's fiduciary duties now shift to gaining the best price for shareholders through sale of the company, including the potential institution of an auction process," said Credit Suisse in the report.
Now that Medivation has established a reasonable selling price for the company after the recent bid, Credit Suisse is anticipating more competitive bids in the near future.
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At Time Of Writing...
Credit Suisse added that Medivation is nearing its valuation estimates of $63 per share. "Our recent sentiment survey suggests 21 percent of investors anticipates MDVN getting bought for $64–$67, with 28 percent anticipating a sale in the $61–$63 range."
Earlier this year, Reuters reported that Pfizer Inc. PFE had also approached Medivation regarding a potential acquisition.
Credit Suisse maintains a Outperform rating on Medivation Inc.
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