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Klarman’s Baupost to Gain More Than $900 Million on Deal

Baupost Group LLC, the Boston-based hedge-fund firm run by Seth Klarman, stands to make a paper profit of more than $900 million today after Merck & Co. agreed to pay a record premium for a big health-care deal with its acquisition of Idenix Pharmaceuticals Inc.

Merck will pay $3.85 billion, or $24.50 a share, in cash for Idenix, which closed June 6 at $7.23, translating into gains for Baupost assuming the hedge-fund firm’s stake in the company hasn’t changed. Baupost owned 35 percent, or 53.3 million shares, of the Cambridge, Massachusetts-based maker of hepatitis C treatments as of March 31, making it Idenix’s largest shareholder, according to data compiled by Bloomberg.