Roche stockpiles cash

While Genentech's board is still squabbling over the value of its shares, Roche has been steadily gathering the money it needs to complete a buyout. The Wall Street Journal reports that Roche has already raised $30 billion of the $40 billion it needs to complete the acquisition, which should help end the sniping from analysts who fretted over the pharma giant's ability to raise huge sums in a troubled market. But Roche's success has also proven problematic. As Roche gains more money, investors continue to raise Genentech's share price. The stock closed yesterday at $86.42 after rising as high as $89. And as long as it trades at or above Roche's $86.50 offer, there will be plenty of pressure on Roche to hike its bid. Genentech says it wants $112 a share and is preparing a Webcast on Monday to take its case directly to investors.

- check out the report in the Wall Street Journal

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