Seth Klarman's Baupost Group Wins Big With Facet Biotech (FACT), Sells Some Shares ~ market folly

Thursday, March 18, 2010

Seth Klarman's Baupost Group Wins Big With Facet Biotech (FACT), Sells Some Shares

Seth Klarman's hedge fund Baupost Group recently filed an amended 13D and a Form 4 with the SEC in regards to shares of Facet Biotech (FACT). In the Form 4, we see that Klarman has sold 1,506,875 shares at a price of $27 per share. This transaction took place on March 16th, 2010 and Baupost Group is now left with 2,000,000 shares of FACT, a 7.97% ownership stake in the company. For more investments from Klarman, we've detailed Baupost's portfolio.

This news comes after Facet Biotech saw a bid from Abbott Laboratories (ABT) to acquire the company for $27 per share, a 70% premium from where shares were trading before the bid. This is well above Biogen Idec's prior offer of $17.50 that preceded the most current bid from Abbott. So, Klarman has definitely locked in some solid gains here. You'll remember when we previously detailed how Baupost had secured the right to buy more FACT after Biogen's initial bid. It seems the hedge fund took a very active role in trying to generate shareholder value through a higher bid here. For more insight from this investment guru, check out Seth Klarman's lessons from the financial crisis.

Taken from Google Finance, Facet Biotech is "a biotechnology company dedicated to advancing its pipeline of several clinical-stage products and expanding and deriving value from its protein engineering platform technologies to improve the clinical performance of protein therapeutics."

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