Roche raises Illumina bid to $6.7 billion
pharmafile | April 2, 2012 | News story | Sales and Marketing |
Roche has increased its takeover bid for Illumina, with the offer now valuing the company at $6.7 billion.
The firm makes tools and systems to analyse genetic variation and gene sequencing, an area in which Roche is keen to consolidate its place. Following the initial bid for the firm, Roche said that Illumina has been unwilling to participate in substantive discussions.
Upping its share offer price from $44.50 to $51.00 to buy all outstanding shares of common stock, the Swiss firm also included a strongly worded letter from its chairman, Franz Humer.
“If you continue to decline to negotiate with us, we will have no choice but to continue our effort to effect a transaction unilaterally. However, I strongly hope that you will either agree to commence discussions with us now or remove all obstacles so that your shareholders can make their own determinations about the adequacy of our increased offer.”
Illumina swiftly issued a response recommending its stockholders ‘take no action’ with regards to Roche’s increased bid for the San Diego-based company. It added: “Illumina’s board of directors will thoroughly review Roche’s revised proposal and make a recommendation to stockholders regarding the proposal in due course.”
In January Roche proposed to buy all of the outstanding shares of Illumina at a cost totalling $5.7 billion. Its new move will again put up candidates for election to Illumina’s board, in a bid to make Roche-nominated directors a majority presence.
Roche’s plans for the deal are to combine its own applied science business with that of Illumina, making San Diego the new HQ for the unit, whilst keeping its existing applied science operations in Penzberg, Germany.
It says the companies’ combined resources would help accelerate sequencing into clinical and routine diagnostics, and it is leaving the door wide open for negotiation with the US company.
Illumina shareholders will decide on 18 April whether or not to replace board members with Roche nominees, which would pave the way for negotiations.
Brett Wells
