Genentech tells shareholders to reject Roche bid
Genentech Inc. says its shareholders should reject a hostile buyout bid from Swiss drugmaker Roche.
By Agencies |
NEW YORK: Genentech Inc. says its shareholders should reject a hostile buyout bid from Swiss drugmaker Roche.
A Genentech committee says the offer is inadequate and not in the best interest of stockholders.
Roche owns 56 percent of Genentech and is looking to buy the rest of the company for $42 billion, or $86.50 per share. It would need support from a majority of the other shareholders.
Last July, Roche made a bid of $89 per share for South San Francisco-based Genentech, but was turned down. Genentech stock traded as high as $99.14 in 2008 in anticipation of an eventual deal. At the time, some analysts valued Genentech at $100 per share or more.
Genentech's drugs include the cancer treatment Avastin. Genentech shares closed Monday down 47 cents at $84.55.
A Genentech committee says the offer is inadequate and not in the best interest of stockholders.
Roche owns 56 percent of Genentech and is looking to buy the rest of the company for $42 billion, or $86.50 per share. It would need support from a majority of the other shareholders.
Last July, Roche made a bid of $89 per share for South San Francisco-based Genentech, but was turned down. Genentech stock traded as high as $99.14 in 2008 in anticipation of an eventual deal. At the time, some analysts valued Genentech at $100 per share or more.
Genentech's drugs include the cancer treatment Avastin. Genentech shares closed Monday down 47 cents at $84.55.
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