Biogen Inc. said Tuesday it plans to redeem all of its $2.125convertible exchangeable preferred stock on June 20. The stockis redeemable for $26.73 per share or it may be converted intoBiogen common stock (NASDAQ:BGEN) at a conversion rate of1.64 shares of common stock for each share of preferred stock.
At Tuesday's common stock closing price of $28.50, thisamounts to $46.72 per share of preferred. The preferred wasissued in June 1989 at $25 per share.
The Cambridge, Mass., company said its annualized earningsper share could increase up to 20 cents because it no longerwill be required to pay the preferred dividend.
Assuming the conversion of all 2.8 million shares of preferredstock, Biogen will have 31.9 million shares of common stockoutstanding after the conversion.
Biogen stock closed up $1 on Tuesday. The company also was inthe news when Schering-Plough Corp., its licensee for alphainterferon, announced European recommendation for approvalof the drug for treatment of hepatitis C (see previous story).
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