UPDATE: Pfizer confirms rumors, entering agreed $14 billion bid to acquire Medivation

Following weekend speculation and rumors, US pharma giant Pfizer (NYSE: PFE) this morning confirmed that it has entered into a definitive merger agreement with Medivation (Nasdaq: MDVN), to acquire the biopharmaceutical company focused on developing and commercializing small molecules for oncology,

The offer is for $81.50 a share in cash for a total enterprise value of round $14 billion, a preimum of around a third on last Friday's closing share price of $67.16. The boards of directors of both companies have unanimously approved the merger, which is expected to be immediately accretive to Pfizer’s adjusted diluted earnings per share (EPS) upon closing, approximately $0.05 accretive in the first full year after close with additional accretion and growth anticipated thereafter. Pfizer does not expect the transaction to impact its current 2016 financial guidance.

The agreement appears to thwart the previous announced advances from French pharma major Sanofi (Euronext: SAN), wich offfered around $10 billion.Others said to be in the frame to acquire Medivation included AstraZeneca, Celgene, Gilead Sciences and Merck & Co. Medication's shares rocketed 20.4% to $80.64 in pre-market trading, having risen 39% year-to-date on takeovover speculation.