Illumina Earnings Delay… More Consideration For Higher Merger Price, Much Higher (ILMN, RHHBY)

Illumina, Inc. (NASDAQ: ILMN) is the subject of a Roche takeover at $44.50 per share now, but many investors are expecting a much higher bid.  The company has supposedly rebuffed all of Roche’s efforts and it now has adopted a poison pill with a 15% trigger.  Now the company is delaying its earnings report while it reviews the offer.

The company has just “reaffirmed the preliminary unaudited fourth quarter and 2011 fiscal year financial results disclosed at the JP Morgan Healthcare Conference on January 10, 2012, including fourth quarter revenue of approximately $250 million and fourth quarter estimated pro forma earnings of $0.34 per share… reaffirmed its expectation that it will meet or exceed equity analyst estimates for 2012…”

It will now postpone its previously scheduled fourth quarter earnings announcement until completing its review of Roche’s unsolicited tender offer AND until after the issue of its recommendation.

Shares are down 0.5% today at $52.50, but against a price of $44.50 for the buyout it is obvious shareholders expect a higher price.  Many will not accept a lower price and will likely sue to block the deal.  This was almost an $80 stock just last summer.  The buyout at $44.50 will just bury too many ‘long and wrong’ shareholders.

JON C. OGG