Avigen, MediciNova deal
In its 4Q08 earnings announcement on Feb. 11, Avigen updated its progress on assessing strategic alternatives, saying it has four proposals under review and expects "several others in the coming weeks." Two days earlier, a letter to Avigen Chairman Zola Horovitz from MediciNova President and CEO Yuichi Iwaki claimed discussions about the latter's acquisition proposal have stalled because Avigen insists on a "standstill provision" that would contractually bar MediciNova from proposing any business combination to Avigen's shareholders for one year, unless Avigen's board unanimously supports the offer. MediciNova urged Avigen to resolve the issue and allow MediciNova to put its current offer to shareholders. MediciNova proposed to acquire Avigen for 1.8 million shares and a convertible security equal to Avigen's net cash, less $7 million that would go to MediciNova (see BioCentury, Jan. 5). ...