Icahn challenges Biogen on effort to sell itself

NEW YORK (Reuters) - Investor Carl Icahn is disputing statements by Biogen Idec (BIIB.O) over the biotechnology company's efforts to sell itself last year, stepping up pressure in a proxy fight that will come to a head later this month.

Icahn, who is seeking to add three directors to Biogen's board, said in a memorandum to shareholders released in a proxy filing on Thursday, that documents made public last week about the sale process show that a number of company statements made in connection with the sale process are "untrue."

Biogen released the documents following a lawsuit by Icahn filed in Delaware Chancery Court earlier this year. Icahn in the memo claimed a number of Biogen's assertions about the sale process "are not consistent with their own documents."

A Biogen spokeswoman said the company "completely disagree(s) with his allegations."

The documents "confirm what we said all along, which was that the process was professional, thorough, objective," spokeswoman Naomi Aoki said.

Icahn, a billionaire who is also engaged in a high-profile battle with Yahoo Inc (YHOO.O) management, has been critical of Biogen after the company ended an auction to sell itself in December without an offer.

In the memorandum, Icahn said Biogen's books and records show the board had "very little input in designing and supervising the sales process."

He also said at least one potential bidder was denied a request to talk to Elan Corp Plc (ELN.I), Biogen's partner on the multiple sclerosis drug Tysabri, potentially causing that bidder to walk away.

Aoki disputed those assertions, saying the documents confirm the board had a lot of input and was fully informed. "They were very much involved in the design of sale process and then they were fully informed every step of the way," she said.

Regarding the Elan claims, she said the company made clear from the outset that talking to partners would be part of the last stage of the sale process, in order to maximize value for Biogen shareholders. "We clearly communicated the process to all interested parties," Aoki said.

Biogen will hold its annual meeting on June 19. The shares, which closed at $62.25 on Wednesday on the Nasdaq, are up about 9 percent this year.

(Reporting by Lewis Krauskopf, editing by Maureen Bavdek)