IBT plays up to shareholders

The management of International Biotechnology Trust (LSE:IBT) is steadily caving in to the requests of Millennium Partners, its 10.06 percent shareholder. In a press release issued just prior to Friday's shareholder meeting, IBT said it will return up to 42 percent of the trust back to shareholders, which has been upped from 16 percent at the start of the week. This is despite the fact that IBT chairman, John Green-Armytage, told BioCentury that liquidation of the fund would not be in shareholder interest, as it could only be done at a discount to net asset value.

Millennium had called for the option to cash out of the 285 million ($428 million) fund. In response, IBT said in a letter to shareholders last Friday that it would return 45 million ($67.5 million) to shareholders (see BioCentury Extra, Monday July 3). However, IBT now said this will increase to 70 million this year and up to 50 million in 2001. ...