Roche finally succeeds in Ventana bid

USA-based Ventana Medical Systems has finally succumbed to Swiss drugs and diagnostics major Roche's hostile bid for the company (Marketletter July 2, 2007), which the former has rejected several times as inadequate, with the two parties announcing that they have signed a definitive merger agreement.

Offer raised to $89.50 a share

Under the terms of the accord, Roche will increase the purchase price in the tender offer for Ventana common shares to $89.50 each in cash (or an aggregate of about $3.4 billion on a fully-diluted basis), and directors will recommend that shareholders tender their shares to the Swiss firm. The merger deal has been approved by the boards of both companies. This offer represents a premium of 4.9% to Ventana's closing price on January 18, a 19.3% improvement to Roche's initial offer of $75.00 a share last summer and 72.3% more than the US company's closing price on June 22, 2007 (the last trading day prior to the announcement of Roche's initial bid).