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Roche in new £30bn move on Genentech
Lucy Tobin30 Jan 2009
There was more activity in the pharmaceuticals sector today as Swiss giant Roche launched a $43 billion (£30.1 billion) hostile bid for Californian biotech company Genentech.
The approach is a cut-price version of an offer made by Roche in July. The Swiss firm, which already owns just under 56% of Genentech, proposed a $89-a-share merger at that time, but the deal was rejected.
Today, Roche laid out plans to contact investors in cancer drug developer Genentech with an $86.50-a-share offer. It will be funded through cash, bonds and bank finance.
Roche chairman Franz Humer said: “After seven months, the process had run its course. I don't think a friendly offer is on the table.
A tender offer is a hostile bid. I can't find another word for it.”
The bid follows Roche's successful unsolicited move on US diagnostics company Ventana last year.
The pharma sector has been a flurry of activity so far this year. Pfizer launched a $68 billion takeover of rival Wyeth last week, while British giant GlaxoSmithKline bought some of Belgian group UCB's drugs.
