BioCentury
ARTICLE | Finance

Ebb & Flow

December 17, 2007 8:00 AM UTC

Dashing the hopes of buysiders, Biogen Idec (BIIB) said it had not received any definitive offers and would remain independent. The announcement came after market close on Wednesday and BIIB plunged $17.97 (24%) to $57.91 on Thursday, erasing more than $5 billion in extra market cap that was still remaining in expectation of a takeout.

The shares had run up since July 2 when BIIB completed its $3 billion share buyback, followed by aggressive long-term guidance from management and stock purchases by financier Carl Icahn. Then the company officially said it was considering being acquired after the market closed on Friday, Oct. 12. The frenzy peaked the next Monday, when the shares closed at $82.51. ...