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). [...]
Reuters reports that Roche’s ability to raise funding for the Genentech merger are in doubt.
“…In light of the current climate, a $45 billion loan looks large. It would have to be a combination of everything — Roche would have to print bonds to get the deal done,” a senior banker close to the deal said.”
“…I [...]
According to Reuters, Roche is standing firm on it’s current buy-out deal.
Roche Holding Ltd. sticking by its $43.7 billion offer to buy out the rest of Genentech Inc.
Deal recap:
As I originally posted here, the details are:
Deal price: $89/sh
Nov 18 price: $80.63
ROI: 10.4%
Sources:
http://www.reuters.com/article…
Target: Genentech, Inc (DNA)
Buyer: Roche Holding AG
Footing: Unfriendly, nothing agreed upon yet.
The company flexed its financial muscles with the Genentech bid in July, holding firm to its $89 per share offer for the 44 percent it does not already own, even though it was rejected as undervaluing the U.S. biotech company. - Reuters via NYT [...]
