A Higher Bid for Illumina? (ILMN, RHHBY)

Illumina Inc. (NASDAQ: ILMN) had a solid day on Wednesday due to a hostile bid from Roche (RHHBY).  The hope is that a higher bid may head Illumina’s way and the 52-week trading range is only a part of the rationale behind this hope. 

Swiss pharmaceutical giant Roche is trying to acquire the specialized research systems maker for its gene sequencers and other items at $44.50 per share in a near-$5.7 billion deal.  Shares closed at $55.15 on Wednesday, which is a key focus for any trader that it is either going to get a higher bid or that the current bid undervalues the company. 
Illumina has now adopted a shareholder rights plan in defense of this offer, a move called a poison pill in the world of mergers and acquisitions.  Roche argues that this is more than a 60% premium to its December 21 price before buyout rumors surfaced.  The problem is that the year high is $79.40 and that buyout price will just bury too many existing holders. 

Without knowing the Roche post-poison-pill attitude, the company said Illumina has rebuffed its advances. 

JON C. OGG