Genentech’s board is recommending that shareholders accept the $95 a share deal. !--h2>
The hostile battle initiated by Roche to take over Genentech has ended with both sides agreeing to a price of $95 per share. Genentech’s board is now advising shareholders to tender their shares to close the $46.8 billion deal.
Genentech rejected all three of Roche’s prior bids: $89 in July 2008; $86.5 in January; and $93 just three days ago.
This bid represents a 2.47% premium over Genentech’s closing price yesterday and a 15.85% premium over the firm’s closing value the day before the first offer. Genentech opened trading today at $94.33.
Many believed that Roche would have to raise its proposal to beyond $100 per share based on Genentech’s history as an innovator. Late-stage results expected between April and June that could greatly expand the Avastin franchise were thought to be another major factor in setting the terms of the acquisition.
If Roche receives a majority of the outstanding shares at the $95 per share price, the combined company will be the seventh largest U.S. pharmaceuticals firm in terms of market share. It will reportedly generate approximately $17 billion in annual revenues. It will employ around 17,500 employees in the U.S., including a sales force of approximately 3,000 people.