January 30, 2009

Roche to launch tender for Genentech

Swiss pharmaceutical giant Roche said it would initiate a tender offer to take over U.S. biotechnology company Genentech.

TheStreet.com reported Friday that Roche will offer $86.50 a share, as it tries to pick up the 44.2 percent of Genentech it does not already own.

The tender would be offered within two weeks, the company said.

Genentech's board turned down an offer in July valued at $89 a share.

The hostile move follows Pfizer's announcement earlier this week that it had agreed to buy Wyeth for $68 billion.

In light of the lack of progress towards an agreed transaction since then (July), Roche has now decided to make an offer directly to Genentech shareholders, Roche said in a statement.