Finance and Economic

Shareholders of Biogen Idec Inc (BIIB.O: Quote, Profile, Research, Stock Buzz) will meet shortly to decide whether one of the world’s biggest and oldest biotechnology companies should remain independent or be put up for sale by billionaire investor Carl Icahn.

Shareholders will vote at their annual meeting on June 19 either to back Biogen’s nominees for its board, or to support an alternate three-member slate proposed by Icahn, who owns roughly 4 percent of the company’s stock and whose goal is to unlock its value through a sale.

For now, Biogen is tipped to win. Last week three proxy advisory firms issued reports backing Biogen, and while investors do not always follow the advice of the advisers, their recommendations make an Icahn victory less likely.

“If I had to handicap the outcome I’d lean a little more towards Biogen’s slate,” said Damien Conover, an analyst at Morningstar.

At stake is the Cambridge, Massachusetts-based company’s future as an independent entity easy payday loans. Icahn is seeking to permanently limit the board to 12 members to prevent the company from expanding the board and diluting his power.

Currently the company would be allowed to expand the board beyond 12 members.

“When you make this vote you decide either for Biogen as an ongoing concern because you believe in its products, or you opt for a disruptive board that would probably create headwinds for the ongoing business, in return for a sales premium if the company were to be sold,” Conover said.

Biogen, which sells the multiple sclerosis drugs Avonex and Tysabri and the cancer drug Rituxan, tried and failed last year to sell itself. Icahn, who urged the sale, claims Biogen deliberately sabotaged it by conducting a flawed auction. 

Read more