Tip For Roche: Pay For Genentech with Non-Cash CVRs

February 4, 2009

genentech logoIn an unhappy reminder of January 2008, deals continue to collapse or see reductions in price. After the trouble at Rohm & Haas (ROH), the acquisition of Genentech (DNA) by Roche is another large deal officially on the list of downward revisions in price. On Friday, Roche (RHHBY.PK) announced it would take a $86.50 per share tender offer directly to shareholders, Roche logodown from a $89/share proposal back in July. In the meantime, Genentech traded as high as $99.14 in anticipation of an increase in what was seen at the time as a lowball bid. Genentech’s board rejected the $89 bid as inadequate. Read the rest of this entry »