I was going to write about Biogen’s low ball $355 million, $14.50, offer for Facet, but this article by Ransdell Pierson at Reuters says it all. Biogen are playing a smart game and while they’re trying to steal Facet’s drug assets for a pittance, around $50M after cash, it is a win win for everyone, except maybe Facet’s management and board. The share price is now above the offer price, but I won’t be selling, as I see good odds of a higher offer. It’s very unlikely, but my perfect scenario would see the offer close at a higher price in late February 2010, so I get capital gains discount. I imagine Seth Klarman will be rooting for a late December close.

If this deal closes I’ll be kissing goodbye to my second biotech lost to a takeover this year, after Gilead bought out CVTX earlier this year.

Biogen Idec offers 64 pct premium for Facet shares

• Biogen says $14.50/share below earlier $15/share offer
• Facet shares jump 74 pct to $15.38, above offer price
• it offered to acquire Facet Biotech Corp, a partner in developing multiple sclerosis and cancer drugs, in a deal valued at about $355 million
• But shares of Facet jumped 74 percent to close at $15.38 on Nasdaq, well above the offer price, amid analysts’ speculation Biogen Idec would boost its bid.
  
• Here’s the key comment for me. JP Morgan analyst Geoff Meacham said Facet should have about $310 million in cash and investments after the third quarter, which would mean Biogen Idec “would seem to effectively be paying less than $50 million” for the smaller biotech. Meacham speculated Biogen Idec might be willing to submit a more enticing bid, of perhaps $18 per share.
• But Biogen Idec said it reduced its offer to $14.50 per share in a letter sent to Facet on Sept. 4, about a week after Facet announced a collaboration with Trubion Pharmaceuticals Inc.
• Biogen said the Trubion deal reduced the value of Facet in its eyes and those of investors, saying Facet shares had fallen 22 percent since the Trubion collaboration was announced. [Opportunistic, or what?]

Full article at Reuters.

My earlier posts and analysis on Facet Biotech.

Related posts:

1. Abbott Acquires Facet Biotech
2. Facet Biotech Corporation (FACT) Q1 2009 Results
3. What Does Klarman see in Facet Biotech?
4. Facet Biotech Update and Analysis
5. Baupost Ups Stake in Facet Biotech
6. Gilead tops Astellas offer for CV Therapeutics