Headed into the long weekend last Friday, Biogen Idec unveiled a $356 million bid to buy Facet Biotech, which had already turned a cold shoulder to an earlier, and higher, offer last August. And early this morning Facet fired off a quick rejection, saying the offer is too low. Investors drawn to the showdown quickly lifted Facet's shares above Biogen's offer.
Biogen, which is partnered with Facet on two key development programs, offered Facet shareholders $14.50 a share--a 64 percent premium on Thursday's close. Back in mid-August Biogen was willing to pay $15 a share, but the big Boston biotech company felt that Facet's recent collaboration deal with Trubion--involving a $20 million upfront and a $10 million equity stake--shaved some value from the company.
Analysts don't expect a deal to go through at this price. Biogen Idec is offering slightly more for Facet than it holds in cash. There's also an added bonus for Biogen Idec if it can make a deal stick. Merrill Lynch notes that a deal would waive a $30 million milestone Biogen owes Facet.