Illumina rejected outright the unsolicited to proposal by Roche to acquire Illumina for $5.7 Billion. In a press release today, Illumina announced that it is rejecting Roche take over offer because it is inadequate and is undervalued. In the letter to SEC filing Illumina cited the three main reasons for rejecting Roche’s hostile offer are
- The Offer is Grossly Inadequate and Dramatically Undervalues Illumina’s Industry-Leading Position and Growth Opportunities
- The Timing of the Offer is Blatantly Opportunistic and Does Not Reflect Illumina’s Strong Platform of New Products and Pipeline
- The Offer Fails to Capture Illumina’s Value as an Enabler of Personalized Healthcare
Jay Flatley, President & CEO of Illumina said
It is the Board’s unanimous belief that Roche’s offer dramatically undervalues Illumina and fails to reflect the value of the Company’s unique leadership position and future growth prospects. Illumina has established itself as the innovation and market leader in tools for genetic analysis, with a proven track record of profitability and outperformance, resulting in significant value creation.
Our industry is nascent, with the promise and potential to experience extraordinary growth in the years ahead as genetic information becomes broadly applied beyond molecular biology research, and into medical diagnostics, reproductive health and cancer management. As the growth of this industry accelerates, Illumina is singularly positioned to expand its market leadership, and to deliver value to our stockholders that is far superior to Roche’s offer.