Genentech, Inc. has announced that a Special Committee of its Board of Directors unanimously recommended that shareholders reject the unilateral tender offer from Roche to acquire all of the outstanding shares of Genentech not owned by Roche for $86.50 cash per share.
The Special Committee, after a thorough review with its independent financial and legal advisors, determined that the offer was inadequate and not in the best interests of stockholders, other than Roche and its affiliates.
The Special Committee unanimously recommends that stockholders not tender their shares into Roche's offer.
“Genentech's strong projected financial performance implies a valuation substantially in excess of Roche's offer price,” said Dr. Charles Sanders, Chairman of the Special Committee of Genentech's Board of Directors. “Our belief in the 2008 Financial Plan stems from the rigor with which it was prepared and updated over a period of more than six months and its neutral stance, being neither conservative nor aggressive. We believe the Plan's projections are further validated by Genentech's remarkable past achievements and the strength of its unparalleled research and development organization, its robust and promising product pipeline, and its industry-leading commercial and financial success. We believe Genentech's exceptional management and team, including its world-renowned scientists, can create far more value for stockholders than Roche has offered. Genentech's track record of industry-leading financial results supports our confidence in its future.”