Biotechnology Value Fund joins activist battle against Facet Biotech

October 7th, 2009
| More
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.

Investment Catalyst:
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
by Biogen.

Research Comment:
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.
For Detailed Investor Profiles on these Investors, click below:
Biotechnology Value Fund Partners
The Baupost Group
Related People: George Rizk; Mark N. Lampert; Seth A. Klarman
Related Entities: Baupost Capital; Baupost Fund; Baupost Group Inc, Baupost Group LLC; Baupost Value Partners; Biotechnology Value Fund II LP; Biotechnology Value Fund LP; BSP Partners; BVF Inc; BVF Investments LLC; BVF Partners LP; Margin of Safety; Margin of Safety
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Hedge Fund Resources and Featured Partner News

More Recent Headlines

Sanjiv Bhatia forms Isometric Capital Management

H3 Global Advisors Targets Sovereign Wealth Funds to Grow Assets

Next Stop: Inflation

Gabelli’s GAMCO in Proxy Battle with Ascent Media

Och-Ziff Capital Management’s Flagship up 20% YTD, Surpasses High Water Mark

Baobab Asset Management records Solid Performance Helix Partners receives backing from Ascalon Capital

Adaptec Criticizes Steel Partners and Warren Lichtenstein

Operational Risk - Asian Institutions Sticking with Portfolio Strategies, but Questioning Use of External Managers

High-Frequency Trading blesses Citadel and Renaissance Tech with High-Profits

Toscafund halves Stake in key investment Aberdeen Asset Management