DOW JONES NEWSWIRES
Biogen Idec Inc. (BIIB) offered to buy Facet Biotech Corp.
(FACT) for about $356 million in a deal that would pay a 64%
premium to bring its development partner under its umbrella.
The two companies have worked together since 2005 on treatments
for multiple sclerosis and solid tumors. Under the proposal, Biogen
would pay $14.50 a share for Facet, well above the $8.79 the
company traded at Friday morning before being halted.
Biogen said it first showed interested in its development
partner in mid-August, offering $15 a share. However, Facet's
subsequent collaboration agreement with Trubion Pharmaceuticals -
despite Biogen's request not to undertake any material transactions
before completing its proposed transaction - led to the lower offer
price. Biogen noted Facet's shares have fallen 22% since the
announcement.
In a letter published Friday via press release, Biogen expressed
disappointment over Facet's decision to enter the pact with
Trubion, saying that move suggested Facet has "no interest in
having a bona fide discussion about a combination."
A Facet representative wasn't immediately available for
comment.
Biogen shares were recently up 47 cents at $50.38.
-By Jay Miller, Dow Jones Newswires; 212-416-2355;
jay.miller@dowjones.com
