Roche’s announcement of a lower offer for the remaining shares of DNA makes me want to abandon this play.  They (Roche) are having earnings trouble and in my opinion, this is a last gasp to try and acquire DNA while they still can get financing (and that’s already in question, as I wrote about here).  Roche says they are confidant the deal will happen, but I am not.

Either way, I am selling my portfolio’s DNA holdings at the current market today and getting out.  I will still make a small positive net, but I feel the risk is too high to continue to hold.

Many people think DNA is worth a lot more than the current offer and I think Roche is not going to be the one to do the deal.  My feelings are that it will be quite some time before a new bidder, if any, surfaces.  Since I am only in DNA for the M&A play, I am getting out.

My entry: $80.63 (11/18/2008).

My exit: $82.45 (2/4/2009).

My ROI: 2.3%, annualized = 10.7% (not too bad I guess).