Home » Analysis

Baupost Ups Stake in Facet Biotech

April 28, 2009 7:27 pm by Dean Morel

Seth Klarman reported on the 8th April than Baupost Group / SAK Corporation have upped their stake in Facet Biotech Corporation (FACT) to 17.80%. Klarman then amended the filing on 27 April with comments alluding to discussing companies direction with the BoD. 

Baupost Group / SAK Corporation, is the Manager of Baupost. Seth A. Klarman, is the sole Director of SAK Corporation.

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 4,374,407

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 17.80%*

* The percentage ownership in the Issuer’s Common Stock, $0.01 par value, is based upon 24,578,158 issued and outstanding shares as reported by the Issuer in its filing on Form 10-Q for the fiscal quarter ended December 31, 2008.

------------------- ------------------------- ---------------------------------
Name                Date                Price                  Number of Shares
                                        Per Share             Purchased/(Sold)*
------------------- ------------------------- ---------------------------------
Baupost             02/12/2009           $6.30                        106,600
BVPIV               02/12/2009           $6.30                         53,800

Baupost             03/17/2009           $7.10                        100,000
BVPIV               03/17/2009           $7.10                         49,400

Baupost             03/17/2009           $7.133                        50,000
BVPIV               03/17/2009           $7.133                        24,800

Baupost             03/18/2009           $7.192                           200
BVPIV               03/18/2009           $7.192                           200

The recent amendment was to insert the following:

The Reporting Persons intend to discuss with the management and board of directors of the Issuer potential changes to the composition of the board of Issuer, as well as aspects of its business, operations, governance, strategy, capitalization, ownership and future plans of the Issuer.

Facet’s May 26 annual meeting in  Redwood City, California, should be an interesting event. With Roderick Wong in conjunction with the activist Chapman looking to gain up to five seats on the board and return cash to shareholders. See Facet’s response to Wong.

[Update: Wong has now withdrawn his slate of directors and issued a joint statement with Facet. Faheem Hasnain, president and chief executive officer of Facet, said, “We thank Dr. Wong for raising important concerns held by some of Facet’s stockholders and advocating for these stockholders.  Our Board values his insights regarding the future of the company and we look forward to an ongoing constructive dialogue with Dr. Wong.”

Dr. Wong said “I am pleased to have brought this situation to an amicable conclusion.  Our discussions have focused on issues that are critical to Facet’s success and I appreciate the time and attention that the company has devoted to our discussions.”]

Be Sociable, Share!