By Anupreeta Das
Of THE WALL STREET JOURNAL
Swiss drug giant Roche Holding Ltd. (ROG.VX) Tuesday made a
hostile offer for Illumina Inc. (ILMN) that values the U.S. life
sciences company at $5.7 billion.
Roche is offering $44.50 a share in cash for Illumina, which
represents a roughly 23% premium to Illumina's share price as of
Tuesday's close. Illumina makes tools for DNA sequencing. Roche
said in a statement that a combination will help Roche strengthen
its presence in the market for genetic solutions and
diagnostics.
Roche disclosed the offer after multiple efforts to negotiate a
deal with Illumina in recent weeks failed, the company said in the
statement. Roche said it would immediately launch a tender offer
for Illumina's outstanding shares. It also said it plans to
nominate a slate of directors for election to Illumina's board.
In a letter addressed to Illumina's chief executive, Jay
Flatley, Roche Chairman Franz Humer said the premium being offered
is "full and fair." He added Roche would combine its existing
applied science business with Illumina and move the business's area
headquarters to San Diego, Calif., where Illumina is
headquartered.
Mr. Humer also said the $44.50-per-share price represents a 64%
premium to where Illumina's shares were trading on Dec. 21, before,
he said, market rumors that it could be a potential target pushed
the stock price up.
Illumina develops tools to study genetic variations and
functions, which can help in the young but growing field of
personalized medicine.
An Illumina spokeswoman was not immediately reachable.
-By Anupreeta Das, The Wall Street Journal
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