Sanofi Ready To Raise Medivation Bid, Threatens To Go Hostile Bid

(RTTNews) - French drug maker Sanofi (SNYNF, SNY) said Thursday that it could be in a position to revise its $9.3 billion offer for San Francisco-based biopharmaceutical company Medivation Inc. (MDVN), if the U.S. cancer drug maker engage in good faith discussion, threatening to take a hostile bid directly to shareholders if not.

Sanofi Chief Executive Olivier Brandicourt said in a letter to the board of Medivation that an acquisition of Medivation is a priority for Sanofi and the French company is committed to effecting it.

Brandicourt said "I want to reiterate our preference to engage with you to negotiate a transaction. We believe immediate engagement would be in the best interests of your shareholders as it would enable them promptly to realize substantial and certain value, while minimizing the disruption to your organization.... if you engage in good faith discussions with us and demonstrate additional value, we could be in a position to revise our offer."

Brandicourt, said, "If you are not prepared to engage with us, we have no choice but to go directly to your shareholders.... If the Medivation Board of Directors continues to refuse to engage with us, then we intend to commence a process to remove and replace members of the Board.... We remain enthusiastic about a potential combination with Medivation."

Last month, Sanofi said that it has made non-binding proposal to acquire Medivation for $52.50 per share, which would represent an all-cash transaction valued at about $9.3 billion.

On Friday, Medivation said that its Board determined that the unsolicited proposal from Sanofi to acquire Medivation for $52.50 per share in cash substantially undervalues Medivation and is not in the best interests of the company and its stockholders.