Biogen Idec makes hostile bid for Facet

Biogen Idec Inc. (NASDAQ:BIIB) said it made an unsolicited offer to acquire partner Facet Biotech Corp. (NASDAQ:FACT) for $14.50 per share in cash. The deal price values Facet at about $356.1 million based on 24.6 million shares outstanding at July 31 and is a 64% premium to Facet's close of $8.82 on Thursday, before the announcement. Biogen Idec also disclosed that it proposed to acquire Facet for $15 per share on Aug. 21, an offer that Facet rejected. Facet gained $6.56 (74%) to $15.38 on Friday, while Biogen Idec was up $1.10 to $51.01.

Biogen Idec said the August offer stipulated that Facet not make any "material commercial or strategic transactions" prior to completing a deal with Biogen Idec. Biogen Idec said its new offer reflects its belief that Facet's value has been diminished by its Aug. 28 deal with Trubion Pharmaceuticals Inc. (NASDAQ:TRBN), under which Trubion granted Facet exclusive, worldwide rights to co-develop and commercialize TRU-016. Trubion will receive $20 million up front and is eligible for $176.5 million in milestones, plus royalties. Facet also will purchase 2.2 million shares of Trubion stock for $10 million (See BioCentury Extra, Friday, Aug. 28, 2009). ...