Facet Biotech Shareholders Reject Biogen Idec Offer

Biogen Idec (BIIB) is walking away from its $420 million effort to acquire Facet Biotech Corp. (FACT) after Facet shareholders didn't tender a majority of their stock in support of the bid.

Biogen had said the offer was its last one and that it would walk away without the support of Facet holders.

"We are moving on, said spokeswoman Amy Reilly. "Beyond that we have no further comment."

Facet said it plans to continue soliciting suitors. The cash-rich California-based drug developer also repeated its offer to allow Biogen Idec to participate in due diligence to determine whether it "would make a materially increased offer."

Facet shares were up 1.2% to $16.60, below Biogen's last offer of $17.50, while Biogen fell 1% to $49.76.

This week Facet amended its "poison pill" to allow its two biggest shareholders, which collectively held 29% of its stock, to raise their stakes without triggering the provision. Both holders opposed the Biogen offer.

Facet and Biogen have worked together since 2005 on treatments for multiple sclerosis and solid tumors. Facet contends that Biogen is trying to cheaply acquire the full rights to daclizumab, a multiple-sclerosis treatment in development by the companies.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail];