Biogen turns hostile in $356M bid to acquire Facet

Biogen Idec (BIIB) won't take no as an answer to its buyout proposal for development partner Facet Biotech (FACT). Two weeks after Facet's board spurned Biogen's unsolicited offer of $14.50 a share, worth $356 million, the Boston biotech giant has gone hostile. It's sticking to its $14.50 offer and says the window will close on October 19.

Biogen Idec is offering a 64 percent premium over Facet's share price on September 3, just ahead of its written proposal. The two companies are already joined closely together in development pacts covering the multiple sclerosis drug daclizumab as well as volociximab.

Several of the analysts covering Biogen Idec's aggressive move don't think that a deal can be struck for $14.50. The $356 million bid is only slightly above Facet's cash position. It would also allow Biogen to forego a $30 million milestone. And as Facet CEO Faheem Hasnain told me recently, the company--which was spun out of PDL--has a number of opportunities to significantly cut its burn rate.

- read the story from Reuters  

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