As expected, Genentech turned down Roche's $43.7 billion bid for all outstanding shares, but made it clear that a sweetened offer could win a nod. Roche's offer to pay an 8.8 percent premium on Genentech's share price--$89 per share--was a non-starter from Wall Street's perspective. Analysts say that it will take more than $100 a share for Roche to win over investors who hold the 46 percent of the stock Roche doesn't already own.
"The special committee is confident in the company's strong financial and clinical momentum and its uniquely productive research and development capabilities, which will continue to enhance shareholder value," said Dr. Charles A. Sanders, Chairman of the special committee appointed to look over Roche's offer.
Roche has to win over a majority of the non-Roche shareholders to complete the deal. Now that their appetite has been whetted, the real bidding can begin.
- check out the Genentech release
- read the AP report