December 17, 2009 / 3:16 PM / 8 years ago

UPDATE 1-Facet seeks other offers after Biogen bid fails

* 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 (Reuters) - 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)

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