By Kristin Jones
Nabi Biopharmaceuticals (NABI) has entered into "advanced
discussions" with flu-drug developer Biota Holdings Ltd. (BTA.AU)
to name Russell H. Plumb as chief executive of the combined company
after a planned merger.
Nabi shares rose 8% in after-hours trading to $1.75. Through
Thursday's close, the stock was down 14% so far this year.
Mr. Plumb was president, chief executive and chief financial
officer of hepatitis C drug developer Inhibitex Inc. from December
2006 through February 2012, when it was acquired by Bristol-Myers
Squibb Co. (BMY) for about $2.5 billion.
Mr. Plumb's appointment as chief executive of the merged entity,
to be known as Biota Pharmaceuticals Inc., hasn't been finalized.
It depends in part on shareholder approval of the merger of Nabi, a
developer of nicotine-addiction treatments, and Biota.
Biota agreed in April to merge with Nabi in an effort to gain
access to the U.S. capital markets. Existing Biota shareholders
would hold about 74% of the new company and Nabi shareholders would
have the remainder.
Nabi has faced opposition to the merger from Mangrove Partners
Fund L.P., which owns a roughly 3.4% stake in Nabi. Mangrove has
urged shareholders to vote against the proposed merger, saying it
undervalues Nabi's assets.
Nabi has said the deal offers a better value than the
liquidation option preferred by Mangrove.
Write to Kristin Jones at kristin.jones@dowjones.com
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