Roche Raises Illumina Offer

The new offer values the total bid at $6.7 billion. A source told Reuters that Roche could increase the offer after conducting due diligence and that “most Illumina top 10 shareholders” are encouraging Illumina to negotiate. Reuters also reported that Baillie Gifford, which owns 11% of Illumina, paid more than $60 per share for its investment. Illumina’s shares closed at $51.98 on March 29, suggesting that investors expect a higher bid. Roche’s current tender offer expires on April 20.

Basel, Switzerland, 3/15/12; San Diego, CA 3/19/12; Basel, Switzerland 3/20/12; Basel Switzerland 3/25/12; San Diego, CA 3/25/12; San Diego, CA 3/26/12; Basel, Switzerland 3/29/12; San Diego, CA 3/29/12—Roche has increased its offer price for the outstanding shares of Illumina by 14.6% to $51.00 per share (see IBO 1/31/12, 2/15/12). Illumina advised its stockholders to take no action until it reviews the proposal. On March 25, Roche extended its tender offer for a second time at the original price per share of $44.50. Illumina’s annual stockholders meeting is scheduled for April 18. At the meeting, four Board members will be elected to replace expiring terms. Illumina’s nominees for the positions are the four existing directors. Roche has put forth its own nominees and has proposed the creation of two new Board seats, for which it has also selected nominees. Illumina sent a second letter to shareholders on March 26 urging stockholders, no matter how many shares they own, to vote for the re-election of Illumina’s incumbent Board members. In addition, on March 15, Roche announced that it received a second request for additional information related to the proposed acquisition from the Federal Trade Commission. The request was in regard to Roche’s microarray business.

< | >