Tags: Illumina | Roche | Billion | Offer

Illumina Board Rejects Roche's Sweetened $6.7 Billion Offer

Monday, 02 April 2012 02:47 PM

Illumina Inc said on Monday that its board unanimously rejected Roche Holding's increased offer to buy the genetic sequencing company for $51 per share, or about $6.7 billion, saying it dramatically undervalued the company.

Illumina management told its shareholders that accepting the revised offer was not in their best interests and urged them not to tender any shares.

The Swiss drugmaker last week raised its offer to buy Illumina from an initial overture of $44.50 per share in an effort to curry support from shareholders of the U.S. company ahead of Illumina's annual meeting later this month.

Illumina shares were trading above $51 on Monday, indicating that investors expect the Roche bid to be raised again. A source familiar with the situation last week told Reuters that Roche could further increase its bid if it found more value in the business during the due diligence process.

In a letter to Roche Chairman Franz Humer rejecting the latest offer, Illumina Chief Executive Jay Flatley said that "it dramatically undervalues Illumina and does not adequately reflect Illumina's singular position in an industry poised for extraordinary growth."

It goes on to call Roche's offer "opportunistic" and said Roche was "fully aware that even the revised offer does not reflect the intrinsic strength or future prospects of Illumina."

San Diego-based Illumina urged its shareholders to support its slate of directors at the April 18 annual meeting and reject Roche's proposals.

Illumina shares were down 67 cents at $51.94 in afternoon trade on Nasdaq after trading as high as $52.62 earlier in the day.

© 2018 Thomson/Reuters. All rights reserved.

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Monday, 02 April 2012 02:47 PM
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