Roche makes $43.7bn Genentech bid
http://news.bbc.co.uk/go/rss/-/1/hi/business/7516622.stm Version 0 of 1. Swiss drugs firm Roche has offered to buy all outstanding shares in its US partner Genentech for $43.7bn(£22bn). Roche - which makes the antiviral drug Tamiflu - acquired a majority stake in Genentech in 1990 and currently owns 55.9% of all outstanding shares. It has offered $89 per share to buy up the remaining stake, a 8.8% premium to Genentech's Friday closing share price. Meanwhile Roche's first-half net profit fell 2% to 5.73bn Swiss francs ($5.59 bn; £2.8bn), slightly above forecasts Group sales increased by 10% to 22bn Swiss francs, with the firm saying that double-digit growth of key products outweighed lower sales of Tamiflu. Roche expects a high single-digit sales increase this year. It also says that if Genentech shareholders approve Roche's approach then the move will deliver annual pre-tax savings of $750 to $850m. Franz Humer, chairman of the board of Roche, said: "Combining the strengths of Roche and Genentech will create significant value and result in benefits for patients, employees and shareholders." |