* Shareholders reject Biogen tender offer
* Facet says open to other, better offers
* Facets shares rise 2.38 percent; Biogen off 2 percent
BOSTON, Dec. 17 Biotechnology company Biogen
Idec Inc (BIIB.O) has terminated its bid to acquire Facet
Biotech Corp FACT.O after Facet shareholders rejected the
offer of $17.50 a share.
Facet said it has asked its financial adviser, Centerview
Partners, to solicit additional parties that may have an
interest in a transaction.
Facet said Biogen still has an the opportunity to make a
"materially increased offer."
Biogen's tender offer expired at midnight on Wednesday.
The companies are jointly developing an experimental drug
to treat multiple sclerosis, daclizumab, and a treatment for
solid tumors, voliciximab.
Facet shares rose 2.4 percent to $16.79 in early trading on
Nasdaq. Biogen was down 2 percent at $49.25.
On Wednesday, Facet received a big boost when The Baupost
Group, a hedge fund run Seth Klarman, said it would not tender
its shares to Biogen. Klarman is the author of "Margin of
Safety: Risk-Averse Value Investing Strategies for the
Thoughtful Investor," a book that is hard to find but has a
cult following among value investors.
Baupost holds a 14 percent stake in Facet. It said it did
not believe Biogen's offer adequately reflected Facet's value.
(Reporting by Toni Clarke; editing by John Wallace)