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Genentech committee rejects Roche's buyout proposal
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SOUTH SAN FRANCISCO, Calif. — A special committee of Genentech's board of directors has unanimously rejected Roche's bid to purchase all outstanding Genentech stock that it does not already own, the company announced in a press release.
While the committee concluded that Roche's buyout proposal substantially underestimates Genentech's value, the panel said it would consider a proposition that "recognizes the value of the company and reflects the significant benefits that would accrue to Roche as a result of full ownership," according to the release.
"The special committee is confident in the company's strong financial and clinical momentum and its uniquely productive [research and development] capabilities, which will continue to enhance shareholder value," Charles A. Sanders, MD, one of three members of the special committee, said in the release. "In addition, we look forward to the company maintaining its successful relationship with Roche, regardless of ownership structure."
In addition, the special committee has approved Genentech's implementation of an employee retention program to address any concerns stemming from the proposed buyout.
In July, Roche proposed buying the outstanding Genentech stock for $89 per share, at a total cost of $43.7 billion.