Why Investors Are Buzzing About These Stocks Today

Sanofi Makes an Acquisition Offer to Medivation 

Sanofi SA (ADR) (NYSE:SNY) has retracted by 1% while Medivation Inc (NASDAQ:MDVN) has surged by 8.7% after the former offered to purchase the latter in a non-binding proposal for $52.50 in cash per share. The offer would represent an all-cash transaction of $9.3 billion and would further Sanofi’s expansion strategy in oncology, especially in the prostate cancer indication. Medivation has a promising prostate cancer therapy, Xtandi, on the market, and two oncology assets in clinical development. Given that experts estimate that one-in-seven men will be diagnosed with some sort of prostate cancer during their lifetime, Sanofi SA (ADR) (NYSE:SNY) considers prostate oncology drugs to be an important future growth area. Sanofi also believes that the deal, if closed, would be immediately accretive to earnings and would offer additional value creation opportunities for Sanofi shareholders.

Warren Buffett‘s Berkshire Hathaway was among 31 elite funds that Insider Monkey tracks which held shares of Sanofi SA at the end of 2015. Cliff Asness‘ AQR Capital Management was among the top shareholders of Medivation Inc (NASDAQ:MDVN) in our database as of the same date.

Terex Merger Benefits Lower

Terex Corporation (NYSE:TEX) shares are trending today after Reuters reported that Finnish crane manufacturer Konecranes expects less tax benefits than previously forecast from its proposed merger with Terex Corp. Due to new proposals from U.S regulators, $36 million worth of financing and tax synergies between the two companies might be eliminated. The two companies agreed to an all-share merger late last year, but Terex has since received a $3.4 billion non-binding and all-cash deal from Chinese company Zoomlion. Although some analysts think that the lower synergies could lead Terex to sell itself to Zoomlion, Terex’s board is still committed to the merger with Konecranes. 19 elite funds owned Terex Corporation (NYSE:TEX) at the end of the fourth quarter, down by four from the end of the preceding quarter.

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