Biotechnology Value Fund joins activist battle against Facet Biotech
|October 7th, 2009||
|Contributed by: Hedge Fund Solutions LLC|
|From this week’s Hedge Fund Solutions Catalyst Equity Research Report, we are highlighting the Biotechnology Value Fund’s investment in immunology and oncology research and drug manufacturer Facet Biotech Corporation (NASDAQ: FACT). The biotechnology hedge fund, a private investment partnership, currently holds 3,683,521 shares in FACT, or 14.9% of shares outstanding. Facet launched in December 2008 as a spin-off from PDL BioPharma, Inc.|
On September 29 BVF changed their filing status with the SEC from “passive” investor to “active” investor and announced they do not intent to tender their shares in the proposed $14.50/share buyout offer recently submitted
Hedge Fund Solutions previously covered FACT in our September 9 and May 1 Catalyst Research Reports (when the stock was trading at $9.26/share), highlighting that on March 31 the Company received a notice from Roderick Wong of his intention to nominate five candidates for election to the five-person board. On April 30 two of Wong’s nominees withdrew themselves as nominees. Wong issued a press release calling for a substantial dividend followed by the sale of the company.
On April 27 Baupost Group (14% shareholder) announced their intentions to discuss with the management and board certain changes to the composition of the board, as well as aspects of its business, operations, governance, strategy, capitalization, ownership and future plans for the business.
On September 8 FACT’s board rejected the takeover bid. HFS estimates 40%+ of FACT shares are held by activist investors.
Hedge Fund Solutions (HFS) is a Philadelphia-based investment research and strategy consulting firm focused on providing substantive solutions on issues relating to shareholder activism. The Firm has an unparalleled depth of knowledge on activist investing and has become the trusted advisers to numerous institutional investors, CEOs and board members worldwide. For more information on Hedge Fund Solutions or to sign-up for their Catalyst Equity Research Reports, please click here.
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