Company is also putting in place an employee-retention program to allay restructuring concerns.

Genentech has found Roche’s $43.7 billion acquisition proposal to be significantly below the firm’s true value, mirroring what most in the industry expected. Genentech has also implemented an employee-retention program to address restructuring concerns if this takeover goes through.

In July, Roche made an unsolicited bid to buy the 44.1% of Genentech that it doesn’t already own for $89 per share. Genentech put together a special committee of the board of directors that excluded Roche employees to analyze the offer.

Analysts had predicted that the 8.65% premium would be considered too low. Genentech opened today at $97.33, suggesting that Roche would need to up its bid to this range.

Even though the committee disapproves of this merger, it says that it would consider a proposal that accounts for Genentech’s current and potential value. “The special committee is confident in the company’s strong financial and clinical momentum and its uniquely productive R&D capabilities, which will continue to enhance shareholder value,” says Charles A. Sanders, M.D., chairman of the special committee

“In addition,” Dr. Sanders continues, “we look forward to the company maintaining its successful relationship with Roche, regardless of ownership structure.”

Genentech also says that in light of the tremendous importance of its employees to the firm’s success, the special committee has approved the implementation of a broad-based employee-retention program. Genentech’s board including the Roche representatives had previously granted the special committee authority to implement such a program.

Previous articleCSL Intends to Buy Talecris for $3.1B