Mutual fund manager Wellington Management Co. has sold 2.9 million shares of OSI Pharmaceuticals Inc. (OSIP), which is fighting a $3.5 billion hostile takeover attempt from Japanese drug maker Astellas Pharma Inc. (4503.TO, ALPMY).

In a filing with the Securities and Exchange Commission, Wellington reported that its investment has dropped to 5.2 million shares of the Melville, N.Y.-based drug maker, or 8.9% of shares outstanding, as of March 31. At the end of 2009, Wellington reported ownership of 8.1 million shares, a 13.9% stake, and was OSI's largest shareholder.

OSI shares closed Monday down 6 cents at $60 and have been above the $52-a-share Astellas offer since it was announced.

Officials from Wellington weren't immediately available for comment.

OSI's board has rejected the bid as too low, and has begun to talk with other companies that could offer a higher price. In response, Astellas agreed to a confidentiality agreement with OSI in order to have access to non-public information, but has continued to assert that its offer is fair.

OSI's sole marketed product is Tarceva, which it sells with Swiss drug giant Roche Holding AG (RHHBY, ROG.VX). The pill, used to treat advanced forms of lung and pancreatic cancer, had worldwide sales of $1.2 billion last year.

-By Thomas Gryta, Dow Jones Newswires; 212-416-2169; thomas.gryta@dowjones.com
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