In its never-ending quest to take over Illumina Inc. (ILMN), Roche Holdings Ltd. (RHHBY) has now increased its offer price for acquiring all the shares of Illumina to $51.00 from the previously declared $44.50 a share. Other terms and conditions of the deal remain unchanged.
Since January this year, Roche has been trying to acquire Illumina, when it had first announced its bid to acquire all shares of Illumina at an offer price of $44.50 per share (aggregate value $5.7 billion) in cash. Then, on the 27th of last month, Roche extended the time-period for its bid to March 23 from February 24, 2012.
Moreover, earlier this week, Roche announced that it has again extended the time period for acquiring all outstanding shares of Illumina to April 20, 2012, from the previously announced date (March 23, 2012).
In mid-March 2012, the Federal Trade Commission (FTC) requested additional information regarding the proposed acquisition of Illumina. The request, termed a ‘second request,’ sought additional information about Roche’s microarray business.
The second request extended the waiting period, imposed by the Hart-Scott-Rodino Antitrust Improvements Act, by 10 days after Roche complies with the request. The extension can be increased voluntarily by Roche or terminated sooner by the FTC.
Post the potential acquisition, Roche intends to combine Illumina with its Applied Science business, thereby strengthening its current offerings in the Life Science market. Roche operates through two segments – Pharmaceuticals and Diagnostics. Applied Science is a wing under the company’s Diagnostics division.
Roche believes that this acquisition will strengthen its position in the sequencing and microarrays market. Moreover, it will help address the growing demand for genetic/genomic solutions.
We currently have a Zacks #4 Rank (short-term Sell rating) on Roche.
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