Monday, April 28, 2008

Cohen's SAC Discloses 5.1% Stake in Applied Bio (ABI); Wants Celera Seperated, CEO Gone and All Options Explored

In a 13D filing after the close Friday on Applied Biosystems (NYSE: ABI), Steven Cohen's SAC Capital disclosed a 5.1% stake (8,604,018 shares) in the company. SAC showd a 222,357 share stake at the quarter ended 12/31/07.

In the filing, SAC disclosed that in March 2008 they sent a letter to the company's non-management directors expressing its continued support for the separation of the company's Celera Group. SAC also encouraged the Board of Directors to take action to ensure that (1) excess costs associated with the Applera parent company and the Norwalk, Connecticut headquarters are eliminated instead of being absorbed by the Issuer's Applied Biosystems Group, (2) the Issuer's current Chairman and Chief Executive Officer ceases to be an officer or director of the Applied Biosystems Group, and (3) all strategic alternatives are fully explored, including the sale of the Applied Biosystems Group.

In the filing, SAC also noted that in July 2007 they notified the company that they intended to nominate certain individuals to the board of directors. SAC and the company reached an agreement, and the company agreed to include Dr. Mardis in its slate of nominees to stand for election at the 2007 annual meeting.

SAC also said they have not determined whether to seek to nominate individuals to stand for election to the company's Board of Directors at the 2008 annual meeting of stockholders, but reserve the right to do so.

SAC paid approximately $276.2 million for the position, or about $32 per share (current price of $30.24).

Labels: , , ,


Post a Comment

<< Home