Roche Drops Illumina Bid

Some analysts expect that Roche will make another offer for Illumina at a later time. However, a Roche spokesperson told Dow Jones on April 23 that Roche plans to return tendered shares to Illumina shareholders. Reuters reported on April 22, citing a report in Der Sonntag, that Roche is in talks with three un-named university research centers to acquire sequencing technology. Roche has announced development partnerships with IBM (see IBO 7/31/10) for nanopore-based sequencing and DNA Electronics (see IBO 11/30/10) for semiconductor-based sequencing. (For Illumina’s quarterly results, see page 12.)

Basel, Switzerland 4/28/12; San Diego, CA 4/28/12—Roche did not extend its unsolicited offer for Illumina stock after Illumina shareholders’ April 18 vote to re-elect Illumina’s Board nominees and reject Roche’s proposals (see IBO 4/15/12). “We continue to hold Illumina and its management in very high regard but, with access only to public information about Illumina’s business and prospects, we do not believe that a price above Roche’s offer for Illumina of $51.00 per share would be in the interest of Roche’s shareholders,” stated Roche CEO Severin Schwan. “We have throughout this process desired to engage in a constructive dialogue with Illumina’s management, listen to its views of value and prospects, and offer a fair and adequate price to Illumina’s shareholders. But in the absence of such discussions, our duty to be disciplined with the assets of Roche’s shareholders has led to this decision. Roche will continue to consider options and opportunities to develop further its portfolio of businesses in order to expand its diagnostics leadership position.” Illumina President and CEO Jay Flatley commented: “We are pleased that Roche has decided not to extend its inadequate offer to acquire Illumina and that we can now return our full focus to growing our business, making the most of the expanding opportunities in our space, and delivering superior results for our customers and stockholders.”

< | >