When BioMarin board member Joseph Klein opted to step down from his position with the company, he presented a laundry list of disagreements in his resignation letter. But the one that's caught the eyes of investors is Klein's assertion that a third party has made an offer for BioMarin that the company has not entertained. That news caused heavy trading of the drugmaker's stock as the market reacted to news that BioMarin might be in play.
"I continue to believe that the CEO should present any serious offer that he has received to acquire the company to the full Board so that the full Board can determine what is in the best interests of our shareholders," Klein says in his letter, "In my opinion, these discussions should be by the entire Board in a duly-noticed board meeting, and not in selective one-on-one telephone conversations or emails."
BioMarin fired back, saying that it disputes Klein's claim that the company received a "bona fide offer." "The company has never received any such offer while Mr. Bienaimé has been CEO and the Company has not engaged in a sale process or the evaluation of similar strategic alternatives as the Board believes that the best course of action to maximize long-term stockholder value is to execute on the company's long-term business plan as an independent entity." BioMarin also has implied that Klein is resigning because the board planned not to renominate him.
Liana Moussatos of Wedbush Securities tells CNBC's Mike Huckman that the idea of BioMarin as a takeover target has been around for years, but that the SEC filings caught investors off-guard. As for the alleged offer? "...[M]aybe there was a low-bid offer that wasn't taken seriously," she tells Huckman.
- see Mike Huckman's blog
- here's Klein's resignation letter
- see BioMarin's response