Pharmion shareholders advised to accept Celgene merger

Drugmaker Pharmion says that its shareholders have been advised to vote in favor of a merger agreement with fellow USA-based firm Celgene by Institutional Shareholder Services. The proposed move, which will be put before a stockholder meeting on March 6 , has also been advocated by the other three leading proxy advisory firms (Glass Lewis & Co, Proxy Governance and Egan Jones). Patrick Mahaffy, Pharmion's chief executive, said that the firm was pleased that the respective advisors have recognized the strategic and economic logic of a merger with Celgene. The transaction, which is said to be worth $2.9 billion, was first proposed by Celgene late last year (Marketletter November 26, 2007).