Roche Plans Direct Cash Offer Of USD86.50/Genentech Share
January 30 2009 - 1:40AM
Dow Jones News
Swiss pharmaceutical company Roche AG (ROG.VX) said Friday it
intends to commence a cash tender offer for all outstanding
publicly-held shares of Genentech at $ 86.50 per share. Roche,
which currently owns 55.8% of the Genentech outstanding shares,
expects to commence the tender offer within approximately two
weeks.
The offer replaces the public proposal made by Roche on July 21,
2008 to acquire all of the publicly-held shares of Genentech at a
price of $ 89 per share in cash by means of a negotiated merger.
After receiving Roche's original proposal, the Board of Directors
of Genentech, with the full support of Roche, created a special
committee comprised of independent directors to consider and
respond to the Roche proposal. On August 13, 2008, the special
committee announced its rejection of Roche's proposal. In light of
the lack of progress towards an agreed transaction since then,
Roche has now decided to make an offer directly to Genentech
shareholders.
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