Och-Ziff Reports 5.5% Stake In OSI Pharma

Och-Ziff Capital Management LLC (OZM) reported a 5.5% stake in OSI Pharmaceuticals Inc. (OSIP), which is fighting a $3.5 billion hostile take-over attempt from Japanese drug maker Astellas Pharma Inc. (4503.TO, ALPMY).

In a filing with the Securities and Exchange Commission, the New York hedge fund manager said the stake wasn't acquired with the intent of "changing or influencing control of the issuer."

Och-Ziff began acquiring shares of OSI on March 1, the same day that Astellas announced its intention to make its take-over offer. The fund spent $153.6 million to buy the 3.3 million-share stake, last buying shares on April 1.

OSI shares closed Thursday at $59.82 and has been above the Astellas offer since it was announced.

OSI's board has rejected the bid as too low, and has begun to talk with other companies that could offer a higher price. In response, Astellas agreed to a confidentiality agreement with OSI in order to have access to non-public information, but has continued to assert that its offer is fair.

OSI's sole marketed product is Tarceva, which it sells with Swiss drug giant Roche Holding AG (RHHBY, ROG.VX). The pill, used to treat advanced forms of lung and pancreatic cancer, had worldwide sales of $1.2 billion last year.

-By Thomas Gryta, Dow Jones Newswires; 212-416-2169; [e-mail]