MARCH 9, 2009, 2:29 P.M. ET
Genentech, Roche Near a Deal
By MATTHEW KARNITSCHNIG, WSJ
The board of Genentech Inc. is near a deal to sell the biotechnology company for $95 a share to suitor Roche Holding AG, according to people familiar with the matter.
The two sides were in discussions over the weekend and were close to announcing the transaction on Monday, one of the people said. There have been some delays as the two sides bicker over timing and closing conditions, these people said, and it's possible that a deal could fall apart.
Still, the momentum is building towards a deal, and an announcement could come as soon as the close of New York trading Monday, the people added.
If accepted, the $95-per-share price would represent a total equity value of $46.7 billion, and 6% above Roche's opening bid of $89.50 back in July. The price would fall well below the $112-a-share figure demanded by a special committee of Genentech's directors back in December.
Roche lowered its price to $86.50-a-share when it announced a tender offer made directly to shareholders on Jan. 30.
On Friday, Switzerland-based Roche raised its offer to $93-a-share to buy the 44% of Genentech it does not currently own. Roche has been pursuing the South San Francisco, Calif.-based company for seven months, and recently met with Genentech shareholders to convince them to support a deal.
A Genentech spokesman said it isn't commenting beyond a statement issued Friday urging shareholders to take no action in response to Roche's sweetened offer of $93 a share. The spokesman also said the company doesn't comment on rumors. A Roche spokesman declined to comment. |
