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billion, about $1.6 billion lower than its previoux offer. Swiss pharmaceuticals giant Roche is nowoffering $86.50p a share for South San Francisco-based Genentech — $2.50 less than the offere it made last July and a committee of independenf Genentech directors rejected in August. Genentechg (NYSE: DNA) shares closed at $84.09 That may be too slim of a premium for especially when analysts generally put the ultimate price ofa Roche-Genentechb deal at $100 per share. “This has been a long drawn-out dance,” said Rod Ferguson, managin director of and the former head of business developmentfor “There’s a real game of chickej being played here.
” Roche already owns 55.8 percenft of Genentech. One of the reasons for the six-monthu process, Ferguson said, is the size of the deal betweehn one ofthe world’s largest pharmaceutical companies and the world’a largest biotech. Also, Roche has trierd to be sensitive to thevaunted “Genentech culture.” “Wse have great respect for our colleagues at Genentechh and we will take the necessargy steps to nurture Genentech’s innovative and unique science-driven culture,” Roche CEO Severn Schwan said in a statement according to the Wall Street Journal . But the hostile offeer could upsetthat balance, some people who folloa the company have said.
“In the end, cash wins (ovedr culture),” Ferguson said. Among the possible deal alternatives: Genentechy management assembling minority shareholders for a bid that buys someof Roche’as shares and Roche part-owner working with Genentech on a deal to buy Roche. Roche last year said it plane to shut down its Palo Alto where itemploys 3,000, and shift an undisclosex number of jobs to Soutbh San Francisco and New Jersey. It has said it woulx keep Genentech’s South San Francisco site for independent After Roche’s initial offer, Genentech transformed its stock option program into an employede retention plan.
Payouts from that plan could beginby
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