Biz people

Icahn insists on board seats

Billionaire investor Carl Icahn said on Monday he is seeking three seats on the board of Biogen Idec Inc, setting the stage for a battle for control of one of the world's biggest biotechnology companies.

Icahn's move follows a failed attempt by Cambridge, Massachusetts-based Biogen to sell itself - a failure Icahn believes was deliberate.

"We believe that the process was flawed in a number of key respects and that the process was run to placate us and other large shareholders who we believe asked for Biogen to find a buyer," Icahn said.

Biogen said its board would review his proposed nominations in light of the best interests of all shareholders, and denied sabotaging the sale.

"We ran what can only be described as a comprehensive and thorough sale process that was consistent with industry standards," said Biogen spokeswoman Naomi Aoki. Biogen, which has a market value of $17.3 billion, makes the multiple sclerosis drugs Avonex and Tysabri and the cancer drug Rituxan. It co-markets Rituxan with Genentech Inc and Tysabri with Elan Corp of Ireland.

Fakahany quits Merrill Lynch

Merrill Lynch & Co said on Monday Co-President Ahmass Fakahany (above right) will leave the company as the brokerage builds a new management team following a credit implosion that triggered $12 billion in net losses in the second half of 2007.

Fakahany's departure is effective on Feb 1. No replacement was announced.

Before his promotion in May to co-president, Fakahany duties included responsibility for market risk management as Merrill's build-up of risky collateralized debt obligations surged.

Exposure to the subprime-laden debt vehicles backfired. Soured CDO positions were mostly to blame for Merrill's $24 billion in write-downs last year and huge net losses.

Company insiders told Reuters in late October they expected Fakahany to resign as Merrill's CDO problems mushroomed. Inside the company, he was seen as a close ally of ousted Chief Executive Stan O'Neal.

Fetting to be Legg Mason CEO

Money manager Legg Mason Inc on Monday said it promoted Mark Fetting, a senior vice-president, to chief executive, effective immediately, replacing Raymond Mason (right), who is retiring.

The announcement ends a long search to replace Mason, 71, who agreed to stay on as chairman and chief executive after the company's succession plans were scuttled last April.

Mason, who is 71 and had been eager to retire, will stay on as non-executive chairman.

Fetting joined Legg Mason nearly eight years ago as a senior adviser focusing on strategy and acquisitions and was involved in the landmark deal in which the Baltimore-based asset manager traded its brokerage unit for Citigroup Inc's asset management operation.

Legg Mason also recently acquired hedge fund group Permal, which has been instrumental in boosting its bottom line.

The company will report earnings today.

The appointment will be a bright spot for Legg Mason. Recently, some of its stock and bond funds suffered from poor performances.

Harrison joins Aurora Capital

Former JPMorgan Chase & Co Inc chairman William Harrison has joined private equity firm Aurora Capital Group's investment advisory committee.

Aurora announced Harrison's role in a press release on Monday. Harrison, 64, will help Aurora partners identify investments and evaluate prospective executives.

Aurora said it manages more than $2 billion in private equity capital. The Los Angeles-based firm said it specializes in buying and building mid-size companies.

(China Daily 01/30/2008 page16)