NEW YORK (AP) -- Biogen Idec Inc. on Monday made a hostile bid for Facet Biotech Corp., taking its $356 million offer directly to Facet's shareholders.
Biogen Idec said it started a tender offer for Facet shares that will expire on Oct. 19. Facet management has turned down Biogen's offer, which values Facet at $14.50 per share. Biogen Idec CEO James Mullen said the offer "makes compelling business sense" for both companies and is in the interest of their shareholders.
Since 2005, the companies have been collaborating to develop the cancer drug candidate volociximab and the multiple sclerosis drug daclizumab.
Cambridge, Mass.-based Biogen went public with the bid on Sept. 4. Facet rejected it Sept. 8, saying it undervalued the company. Facet stock closed at $16.55 on Friday, indicating its investors may expect a higher bid.
In morning trading, Facet stock declined 5 cents to $16.50, while Biogen shares rose 8 cents to $50.08.