Monday February 23, 10:13 PM
Genentech board rejects Roche offer
WASHINGTON (AFP) - US biotech firm Genentech (NYSE: DNA - news) said Monday its board urged shareholders to reject a takeover offer from Swiss pharmaceutical group Roche (Virt-X: ROG.VX - news) as "inadequate and not in the best interests of stockholders."
A special committee formed to study the bid "unanimously recommends that stockholders not tender their shares into Roche's offer," a statement from the US firm said.
"Genentech's strong projected financial performance implies a valuation substantially in excess of Roche's offer price," said Charles Sanders, chairman of the panel.
Roche offered 86.50 dollars (66.5 euros) per share for the remaining 44.2 percent in Genentech, the biotech pioneer which underpins Roche's dominance of the cancer treatment market.
But Genentech's board has balked at the deal, which was reduced from an earlier bid of 89 dollars a share.
Sanders said Genentech was willing to negotiate with the Swiss group but that "Roche refused to increase its original 89 dollar proposal and to engage in productive negotiations with the special committee regarding a mutually acceptable valuation."
The latest bid "substantially undervalues Genentech," he added.
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