A fight tocontrol one of the leading biotech companies is being waged at Biogen Idec ledby Carl Icahn. The activist investor yesterday told reporters [link to Reuters story] that he isseeking three seats on the board of Biogen Idec following a failed attempt bythe biotech company to sell itself, a failure Icahn claims was deliberate, according to Reuters.
“Webelieve that the process was flawed in a number of key respects and that theprocess was run to placate us and other large shareholders who we believe askedfor Biogen to find a buyer,” Icahn said in a statement.
Biogen saidits board would review his proposed nominations in light of the best interestsof all shareholders, and denied sabotaging the sale.
“We ranwhat can only be described as a comprehensive and thorough sale process thatwas consistent with industry standards,” said Biogen spokeswoman NaomiAoki.
Biogen, whichhas a market value of $17.3 billion, makes the multiple sclerosis drugs Avonexand Tysabri and the cancer drug Rituxan. It co-markets Rituxan with Genentechand Tysabri with Elan Corp of
“Weexpect volatility in Biogen’s shares, given what looks to be a looming proxyfight with the potential outcome of reopening the auction process that wasinitiated last fall,” said Geoffrey Meacham, an analyst at JP Morgan, saidin a research note.
Icahn owns12.4 million Biogen shares, or about 4.24 percent of the total.