Genentech accepts Roche $95/share bid

After much to-ing and fro-ing, US biotechnology giant Genentech has finally accepted accepted a yet again improved takeover offer from  majority owner Roche (Marketletters passim). Having started the process  last summer at $89 per share, the Swiss drug major decreased its offer  to $86.50, going directly to shareholders in a "hostile" move, but then  put it up to $93.00 earlier this month, which was again rejected as not  reflecting the US group's worth.

On March 12, however, it was announced that the two had reached a deal  for Roche to purchase the 42% of Genentech it does not already own at  $95 a share, for a total of $46.8 billion. The US firm had previously  indicated that it was looking for $112-$115 a share. The Swiss company  says it will now amend its existing tender offer to reflect the  increased price and eliminate the financing and certain other  conditions. Roche and Genentech have also changed their affiliation  agreement to allow all shareholders to receive the same high price. As  of close of trading on March 11, around 2.9 million shares had been  tendered.