Biogen Idec rejects Icahn's nominees
Proxy fight likely over control of biotech firm
Biogen Idec Inc. yesterday rejected billionaire investor Carl Icahn's proposed slate of corporate directors, setting up a proxy fight over who sits on the Cambridge biotechnology company's board.
Biogen Idec spokeswoman Naomi Aoki said the current board interviewed Icahn's three nominees, but decided they were unsuitable because they were committed to his "single-minded agenda to sell the company." Aoki said such an agenda likely would hurt the company's ability to attract talented employees and form partnerships with other companies.
The company schedules staggered elections for its 12-member board, so only four seats are up for election this year. But if Icahn succeeds in persuading shareholders to approve his nominations, it would give him a powerful platform to continue pushing for a sale of the company or to make other changes. It also could allow him the opportunity to try to win a majority of board seats next year, essentially giving him control of the company.
Icahn, who recently reported he owned more than 4 percent of Biogen Idec shares, nominated one of his investment managers, Alexander J. Denner, and two Harvard Medical School professors, Richard C. Mulligan and Dr. Anne B. Young.
But Biogen Idec said it decided to back three current board members - Cecil Pickett, Lynn Schenk, and company cofounder Phillip Sharp - who are up for reelection. It also nominated Stelios Papadopoulos, a retired investment banker with Cowen & Co., to replace Thomas Keller, who reached the mandatory retirement age.
Ultimately, Biogen Idec shareholders probably will have to decide between the competing sets of nominees at this year's shareholder meeting.
Icahn sued Biogen Idec this month to try to force the company to turn over records of the failed attempt to sell itself last year. Icahn has suggested the process was a flawed effort to pacify him and other investors, rather than a serious bid to find a suitor. A court hearing is scheduled for May. Denner, the Icahn money manager, did not return a call seeking comment.
Wall Street shrugged off the latest push-and-pull in the Icahn-versus-Biogen Idec tussle. The company's shares slipped 7 cents yesterday to close at $65.82.
Todd Wallack can be reached at twallack@globe.com. 