SAC Capital: Pharmion worth more than Celgene bid

NEW YORK, Feb 6 (Reuters) - A major hedge fund shareholder of biotechnology company Pharmion Corp PHRM.O said the company should demand more than the $2.9 billion offered by Celgene Corp to buy the company, according to a regulatory filing on Wednesday.

SAC Capital Advisors, whose funds hold about 8.3 percent, or 3.1 million shares, of Pharmion, said Celgene's (CELG.O) proposed $72 per share cash and stock offer for the company was inadequate based on Pharmion's products and prospects, according to a letter SAC sent to Pharmion.

Shares of Boulder, Colorado-based Pharmion rose $1.00, or 1.47 percent, to $69.25 at mid-afternoon on Nasdaq. Celgene also rose, trading up $2.37, or 4.2 percent, to $57.98 on Nasdaq.

SAC, a $14 billion hedge fund managed by trader Steven Cohen, said it sees "merits" in the business combination.

"However, as the merger is currently proposed, we believe that Pharmion's shareholders would not receive sufficient value for Pharmion's current products," said SAC in the letter that was contained in a regulatory filing.

Celgene disclosed on Nov. 18 that it had agreed to buy Pharmion in a move to build its franchise in cancer and blood disorder treatments. The $72 per share offer price was a 46 percent premium to Pharmion's share price on the prior trading day.

Representatives of Pharmion and Celgene could not immediately be reached for comment.

(Reporting by Dane Hamilton, editing by Richard Chang)