Analysts were on the money when they predicted Roche would raise its tender offer. Roche announced today that it has raised its offer for Genentech to $93 per share, extending the offer until midnight March 20. As you know, the Swiss drugmaker is gunning for the 44 percent of Genentech it doesn't already own and has been steadily rounding up funds over the past two weeks to complete the buyout. Genentech's board rejected the previous $86.50 a share hostile bid, saying it "substantially undervalues" the biotech. Instead, Genentech put up a $112 a share asking price.
"Based on conversations with Genentech shareholders, we believe that there is a strong sentiment to bring this process to a conclusion." Roche said in a statement. "As a result, we are increasing our price to US$ 93 per share to maximize shareholder participation and will proceed quickly to complete all necessary financing. We now look forward to successfully completing the transaction."
- here's Roche's release
UPDATE: Genentech is urging shareholders to sit on the sweetened offer for now. "The Special Committee intends to take a formal position regarding the revised Roche offer promptly, and will explain in detail its reasons for that position by filing an amended Statement on Schedule 14D-9 with the Securities and Exchange Commission," the biotech giant said in a statement to shareholders. Release
ALSO: Zack analysts are advising investors to wait it out too. The firm says shareholders should not tender to Roche until the Avastin data is released, which isn't expected to happen until June. Other factors may also push Roche to offer more, including a decision from the FDA regarding Avastin for glioblastoma expected in May and a decision on an indication for renal cell carcinoma expected in August. Report