ImmunoGen shares hammered after deal launch; LinkedIn settles in; Twitter remains active

By Rebecca Melvin

New York, June 14 – ImmunoGen Inc.’s shares traded down sharply on Tuesday after the company’ late-Monday launch of a $100 million offering of five-year convertible senior notes which was expected to price after the market close.

“The stock getting hammered today was one the things that we thought was significant and indicates that hedge funds were getting positions,” a New York-based trader said.

Shares of the Waltham, Mass.-based biotechnology company started the session lower and selling accelerated into the market close, sending the stock down $1.46, or 29.5%, at $3.49. Volume was 20.1 million shares changing hands compared to daily average volume of 1.4 million, the trader noted.

There didn’t appear to be a gray market in the bond ahead of final terms being fixed and given “what the stock chart looked like, it would be tough to make a gray market trade,” the trader said.

“It will be interesting to see how this prices,” he added.

LinkedIn Corp.’s convertibles saw some carry-over trading action from Monday. Those bonds seem to have settled in around 99, a trader said, after jumping in very active trade on Monday on news that Microsoft Corp. agreed to buy the professional-oriented social media site for about $26.2 billion, or $196 per share, representing a 50% premium to LinkedIn’s share price ahead of the announcement.

Twitter Inc.’s convertibles were steady in fairly active trading after rising on Monday on the LinkedIn M&A news, which rekindled speculation that Twitter is a ripe takeover candidate.

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