Roche Is Disappointed at Illumina’s Rejection, But Does Not Back Off

Roche's Hostile Bid to Acquire Illumina for $5.7 Billion

Roche is disappointed at Illumina’s decision to reject Roche’s unsolicited offer to acquire Illumina for 5.7 billion.  However, Roche does not seem to back off from its interests in acquiring Illumina and wants to negotiate with Illumina at any time.   Reacting to Illumina’s rejection , Roche’s  CEO Severin Schwan said

We are disappointed that Illumina’s Board of Directors has recommended against our offer and refuses to engage in substantive discussions with Roche.  We have reviewed Illumina’s 14D-9 filing, and we continue to believe that our offer is full and fair and provides a unique opportunity for Illumina’s shareholders.

As we have previously stated, it remains our preference to enter into a negotiated transaction with Illumina and we stand ready to commence discussions at any time.

Will Roche Pull a Genentech on Illumina?

Roche is not new to the acquisition game.  Previously, if Roche had set an eye on a company to acquire, it has managed to play the waiting game till it manages to acquire.

More recently, Roche did exactly the same to Genentech; Roche started the hostile offer to Genentech in July 2008 and persisted till March 2009 to acquire Genentech.   Here is the timeline of Roche’s acquisition of Genentech.

  • July 2008:  Roche makes a hostile take over offer to acquire Genentech for US$43.7 billion (US$89.00 per share in cash)
  • Feb 2009: Roche comes with a new offer for Genentech at a reduced US$86.50 per share in cash and gives a deadline till 12:00 midnight March 12, 2009
  • March 2009: Roche increases the offer for Genentech  to US$ 93 per share
  • 12 March 2009:  Roche announced the acquisition of Genentech

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