BB's backup plan

Swiss fund BB Biotech offered a plan last week to provide a 10% annual return to shareholders through cash distributions and continued share buybacks. The proposal is a response to an offer by the Vontobel Group to take the fund private.

BB Biotech (SIX:BION; Xetra:BBZA) plans to purchase about 620,000 shares (4.8%) prior to the fund's March 2013 AGM under an existing share buyback program. At the meeting, the board will request authorization for share buybacks of about 5% annually...