Amidst the sea of bad news this week, this is perhaps one of the few good news one can take. Swiss drugmaker Roche first made a bid of $89, rejected in August, to increase its stake in San Francisco-based biotech firm Genentech (NYSE: DNA) , 56% of which it already owns. Believing it could get a better deal using the recession as an excuse, it brought the bid lower to 86.50 proposing the hostile takeover directly to DNA shareholders. The twist of events made Roche come back with a higher bid of $93. It seems that at this price, the chase will soon be over.
“Based on conversations with Genentech shareholders, we believe that there is a strong sentiment to bring this process to a conclusion,” Roche Chairman Franz Humer said in a press release.
Owning 90 percent of the outstanding shares of DNA when the deal is consummated would see Roche make an immediate cash payment equal to the price per share in the offer ($93) and a future cash payment based on a valuation, according to a squeeze-out provision in a Roche SEC filing last month.