Genentech advises shareholders to reject Roche's $86.50 per share bid; growing hostility

US biotechnology giant Genentech has advised its shareholders to reject the $86.50 per share offer made by Swiss drug major Roche.

In its first extended public response since Roche began its hostile  takeover negotiations, the San Francisco-based firm said that a Special  Committee of its board of directors determined that the offer was  "inadequate and not in the best interests of stockholders, other than  Roche and its affiliates."

Roche already owns 56% of Genentech and made a $89 per share bid for the  remainder last year (Marketletter July 28, 2008). Though it declined  that approach, Genentech said that it "would consider a proposal that  recognizes the value of the company."