(Adds response from Facet's board and updates stock quotes, in
the third and last paragraphs.)
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 that Biogen is trying to cheaply
acquire the full rights to daclizumab, a multiple-sclerosis
treatment in development by the two companies.
On Monday, Facet's board recommended shareholders take no action
in response to the offer until the board has a chance to review its
terms. The board will advise shareholders within 10 business days.
The company also noted it won't participate in this week's UBS
Global Life Sciences Conference in New York.
Facet also 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 spin-off, Facet had $405
million in cash to fund its operations for a number of years while
it attempts to develop its pipeline.
Shortly after the closing bell, Facet shares were down 2% at
$16.40, while Biogen was inactive after ending the regular session
up 1.8% at $50.89.
-By Kevin Kingsbury and Jay Miller, Dow Jones Newswires;
212-416-2355; kevin.kingsbury@dowjones.com
(Thomas Gryta contributed to this article.)
