Sanofi has filed for a pre-merger notification regarding its intention to acquire Medivation, suggesting an acquisition could be back on the cards
Sanofi said it has filed for premerger notification under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR).
The Hart-Scott-Rodino Act established the federal premerger notification programme, which provides the Federal Trade Commission (FTC) and the Department of Justice with information about large mergers and acquisitions before they occur.
This adds another layer to the news that Medivation is actively seeking to sell itself after rejecting Sanofi’s original offer to acquire the company for $52.50 (£36.09) per share.
This news cames after Sanofi wrote an open letter to Medivation’s board of directors, stating that Medivation’s shareholders were interested in progressing with the deal and could replace the board if they did not agree.
However, there have been reports that Pfizer and Amgen are both considering a bid for Medivation, which could make things more complicated for Sanofi.
Sanofi’s original offer was rejected by Medivation because the board of directors said that the company’s offer, “substantially undervalues Medivation and is not in the best interests of the company.”
However Reuters reported that Medivation has now agreed to open its books to both Pfizer and Amgen even though Sanofi said that it would potentially revise its offer if Medivation would come to the table to discuss the acquisition.
The result of this attention appears to have made Medivation’s stock rise by 4%, according to TechInsider, so it will be interesting to see how this potential bidding war unfolds over the next few weeks.