Read my reply to the last post. The 24/7 Wall St article should be retracted. The author is clueless and shouldn't publish an article about something he knows nothing about.
Sentiment: Strong Buy
Agreed with earlier reply. The 24/7 article by Rafi Farber is about the most idiotic article I've ever read. He knows nothing about poison pills. The poison pill is simply designed so that a hostile buyer can't acquire more than X% (e.g. 10%) of a target company's shares without board approval or the hostile buyer will swallow the "poison pill" (they'll get diluted). Sanofi knows this so that is why they are not buying up shares but instead trying to replace the company's board so a new board would then run an auction for the sale of the company and abandon any other option. By the way, MDVN's legal counsel (Wachtell) invented the poison pill. They hired the best law firm in the world to advise them on this process. I also agree that we should REJECT the proposed replacement of the board. If reuters report is correct that MDVN's board has started their own auction then much better for them to run with credible threat to continue with business plan as one strategic alternative. It gives better bargaining power. The MDVN board is mindful of their fiduciary duties and I'm sure they've been given the speech about duty at this point to maximize shareholder value. Be patient and we'll all do well. I picked up 3000 shares. Low chance this stock is less than $60 in 6 months. More likely for a buyout over $70.
Of course the conniving SNY company does not wish to spend $60 + a share so they could not accumulate a meaningful number of shares.
yes it is,,,,,sanofi
Sentiment: Strong Buy
No- like lurker said- shares owned is not important at all here because this is a cash buyout. Also- no one holder can own more of 20% of MDVN shares per their by-laws anyway. I hope something in form of a 'bid' appears soon so things would go forward without replacing the Board!
yeah, the author either does not understand or is intentionally misleading. He is throwing something out there hoping it sticks...
We agree on something! ;-)
SNY has not filed a 13D so they do not own more than 5% of the shares. I would have thought that they would have bought more shares cheap if they knew that they were going to make a run here.
1) I am pretty certain the three companies in the article did not read it and say "we have to get out of this because Barron's rehashed an analyst comment from an analyst who has never been in a strategic meeting with any of the three." The headline is very misleading and over the top.
2) It is Sanofi.
3) The market is closed Monday so any potential announcement would probably come Tuesday morning after the interested parties spend their three day weekend (which they will be doing) determining what they are going to do.
announcement monday,,,,even safoni knows its selling snake oil at that price
Sentiment: Strong Buy
Meant to give a thumbs up. MDVN say no to SNY
Ah- right - it is not a 'tender offer' - it is a cash buyout. A clever ploy to scare shareholders to maintain the current board!
Rafi Farber is an idiot. The poison pill he is talking about is useful only in a situation where the acquirer has purchased substantial shares, so the poison pill will provide everyone else the right to buy cheap shares which effectively dilutes to the point that the acquirer that might have had 30% stake now has 15%. Sanofi is not buying share in an attempt to get on the board.
I know dilution is bad- and that would probably be the end of any possible take over attempt as well- so we can actually end up with a lower stock price before all this started?
for of course. Also, don't forget who is advising Sanofi. Yes, the master of trickery GS, which is very likely the source of all these soft bashing articles... I have no fear as we have the other master of trickery on our side, JPM.
Proposed Consent Solicitation a Tactic to Facilitate Sanofi’s Substantially Inadequate Proposal
Medivation to Promptly File Consent Revocation Materials
SAN FRANCISCO, CA – May 25, 2016 – Medivation, Inc. (NASDAQ: MDVN) today urged its stockholders to reject Sanofi’s attempt to replace the company’s entire Board of Directors with hand-picked nominees through a proposed consent solicitation, which Medivation believes is a tactic for Sanofi to facilitate its substantially inadequate and opportunistically-timed proposal to acquire Medivation. Medivation expects to promptly file consent revocation materials with the U.S. Securities and Exchange Commission.
On April 29, 2016, the Medivation Board unanimously rejected Sanofi’s unsolicited, non-binding proposal to purchase Medivation for $52.50 per share in cash because it substantially undervalues the company, its leading oncology franchise and its innovative, late-stage pipeline. The Medivation Board reached its conclusion about Sanofi’s proposal based on a thorough analysis of the commercial momentum and outlook of the company’s marketed product, XTANDI®; its excellent pipeline of prospects; its track record of successful drug development; and its history of delivering superior returns to stockholders.