Facet Biotech rejects Biogen Idec's sweetened takeover offer

The board of US biotechnology firm Facet Biotech Corporation has rejected Biogen Idec's sweetened  though unsolicited $420-million acquisition bid.

In early September, Massachusetts-based Biogen, the world's largest maker of medicines for multiple sclerosis-a central nervous system disease which affects coordination-offered $14.50 per share of Facet, which valued the company at $371 million.

The Facet board immediately rejected the takeover bid Biogen, a global leader in innovative therapies, terming the offer as ''inadequate.'' (See: Facet Biotech spurns Biogen's buyout bid)

Last week, Biogen raised its earlier $14.50 per share offer to $17.50, a premium of nearly 25 per cent to Facet's closing price on 3 December, valuing the compny at a total of $493 million, saying that it was the "best and final offer," which would be valid till 16 December.

California-based Facet said yesterday that with the assistance of its financial and legal advisors, it determined that the revised offer was inadequate and therefore not in the best interests of Facet Biotech's stockholders, while opening the possibility of entering due-diligence talks.

"We analysed the unsolicited, revised tender offer of Biogen Idec and determined that $17.50 per share does not reflect the value of our company and its prospects. We believe Biogen Idec is materially undervaluing our assets while overstating our liabilities, and their offer demonstrates an incomplete understanding of our pipeline and technologies," said Facet Biotech president and chief executive officer Faheem Hasnain.