Seth Klarman Sold Out Horizon Lines Inc. and Sold Down Facet Biotech Corporation
Facet Biotech Corporation (FACT)
Facet Biotech Corporation offers biotechnology research services for drug and pharmaceutical products development. It is dedicated to advancing its pipeline of four clinical-stage products and leveraging its research and development capabilities to identify and develop new drugs. The ultimate goal of the company is of developing therapeutics that will improve people's lives. The company is based in Redwood City California. Facet Biotech Corporation has a market cap of $391.7 million; its shares were traded at around $15.95 with and P/S ratio of 21.4.
Klarman initiated a position of 2.8 million shares in 4Q08. He increased his position to 4.4 million shares in 1Q09.
FACT is being acquired by Biogen Idec Inc. (BIIB).On September 4, 2009, BIIB reiterated its proposal to acquired FACT shares for $14.50 per share in cash. The offer represented a premium of approximately 64% over the $8.82 closing price of Facet’s common stock on September 3, 2009.
Klarman’s sale of shares is prompted by the cash offer. Investors have pushed the stock price over the offered $14.50 per share, apparently expecting BIIB or someone else will off a higher price.
Horizon Lines Inc.(HRZ)
Horizon Lines Inc. is a container shipping and integrated logistics company. It accounts for total U.S. marine container shipments from the continental U.S. to the three non- contiguous Jones Act markets Alaska Hawaii and Puerto Rico and to Guam. Horizon Lines Inc. has a market cap of $204.3 million; its shares were traded at around $6.76 with a P/E ratio of 11.1 and P/S ratio of 0.1. The dividend yield of Horizon Lines Inc. stocks is 6.5%.
Klarman initiated a small position of 380,300 shares in 4Q05 and gradually increased to a peak holding of 7.1 million shares as of 2Q08. He has been selling since then, and in 2Q09 he reduced from 3.6 million shares to 3.0 million shares. The recent sell-out represents his complete exit from the investment in which he lost good money.
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