Facet Biotech Corp.'s (FACT) board rejected Biogen Idec Inc.
(BIIB) raised $420 million acquisition offer and said investors
shouldn't tender shares at Biogen's "inadequate" bid, though it
opened up the possibility of entering due-diligence talks.
Facet shares rose 2.9% to $17.90 premarket on word of potential
cooperation between the companies. Through Wednesday the stock was
up 81% in 2009.
A combination of the two biotechnology firms, which already
collaborate on multiple sclerosis and oncology drugs, would join
companies with focuses on autoimmune disease and cancer.
Last week, Biogen boosted its bid 21% to $17.50 a share after
Facet had rebuffed its original offer at $14.50. It gave investors
a Dec. 16 deadline to respond to its "best and final" proposition,
while Facet initially told its shareholders to hold off action
until the board responded.
Chief Executive Faheem Hasnain said Thursday that Biogen Idec
was undervaluing Facet's assets while overstating its liabilities.
"Their offer demonstrates an incomplete understanding of our
pipeline and technologies," he added.
He went on to say that there has been third-party interest in
the company and Facet's financial adviser will solicit additional
third-party interest.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com