Roche has apparently capitulated in its fight to take over Genentech Inc. (NYSE: DNA). Its cancer franchise and its pipeline, along with a shareholder proxy fight, finally made Roche tip its hand. The company’s $86.50 tender offer, which was lowered already, was raised to $93.00 tender offer.
The offer’s deadline has been extended to midnight on March 20. Shareholders have to agree to the deal, which is subject to the original conditions. The company has raised $36 billion in capital and Roche says in an SEC filing that it can raise the rest.
As of March 5, Roche said that only about 500,000 shares have been tendered in favor of the offer. Many still feel that Genentech is worth more than $100 per share. But this is a bird in the hand in a very tough climate. This new offer might represent much more than two birds in the bush.
Genentech shares are now trading up 10% at $89.90 on the news.
Jon C. Ogg
March 6, 2009
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
