DOW JONES NEWSWIRES
Biogen Idec Inc. (BIIB) launched its $356 million tender offer
for Facet Biotech Corp. (FACT), taking directly to shareholders a
takeover bid repeatedly rejected by the company.
Facet, a cash-rich biotech company has argued Biogen's
$14.50-a-share offer doesn't put much value on its product pipeline
and operations. Facet contends Biogen is trying to cheaply acquire
the full rights to daclizumab, a multiple-sclerosis treatment in
development by the companies.
In response, Facet has adopted a poison-pill plan to prevent a
hostile takeover attempt, but Wall Street analysts project Biogen
taking a friendlier approach and raising its offer closer to $20 a
share in order to close the deal.
Biogen's tender offer is set to expire at 12 a.m. EDT Oct. 19
unless extended.
Facet was spun off from PDL BioPharma Inc. (PDLI) in December in
order to separate the company's biotech assets from its
royalty-producing assets. After the spinoff, Facet had $405 million
in cash to fund its operations for a number of years while it
attempts to develop its pipeline.
Facet shares fell 0.9% premarket to $16.40 while Biogen was
inactive after closing at $50 on Friday.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com
(Thomas Gryta contributed to this article.)
