DOW JONES NEWSWIRES
Illumina Inc. (ILMN) said it will postpone its fourth-quarter
earnings release as the board of the U.S. life-sciences company
reviews an unsolicited tender offer from Swiss drug giant Roche
Holding Ltd. (RHHBY, ROG.VX).
Illumina said its board intends to release its formal position
on the hostile takeover attempt within 10 business days and the
company plans to release its latest earnings report at the same
time.
Illumina advised shareholders to take no action pending the
board's review.
Illumina, which reaffirmed its preliminary fourth-quarter
results disclosed earlier this month, said its board will
thoroughly review the offer to determine a course of action that it
believes is in the best interest of stockholders.
On Thursday, Illumina adopted a shareholder rights plan with a
15% trigger in an attempt to ward off Roche's hostile-takeover
attempt.
Roche's offer, made Tuesday, values Illumina at $5.7 billion.
Roche is offering $44.50 a share in cash for Illumina, representing
a premium of roughly 18% to Illumina's share price as of Tuesday's
close.
Illumina makes machines that use blood or tissue samples to
decode a person's entire genetic makeup in about a week--a process
known as DNA sequencing. Roche has said that a combination of the
two companies would help strengthen its presence in the market for
genetic solutions and diagnostics.
A shareholder-rights plans, also known as a poison pill, is
meant to deter coercive takeover tactics. Under the plan, one
preferred-stock purchase right will be distributed as a dividend on
each share of the company's common stock held as of the close of
business Feb. 6. If a holder or group acquires more than a 15%
stake, the other holders will have the option to add to their
investments.
In response, Roche said it was disappointed with the tactic but
called the move unsurprising, adding that it is confident Illumina
shareholders will see the value of the offer.
In recent trading, Illumina shares slid 26 cents to $52.39. The
stock has risen 39% since Tuesday's close.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com