Roche to persist in US genetics takeover bid despite rebuff

Feb 8, 2012, 11:26 GMT

Basel, Switzerland - Swiss pharmaceutical group Roche announced Wednesday it would pursue the takeover of US genetics firm Illumina even after its offer to shareholders was rejected.

The deal would boost Roche's access to the genetic sequencing market, where some 90 per cent of analyses are carried out on Illumina equipment.

Roche chief executive Severin Schwan said he was disappointed that Illumina's board had rejected the offer as too low.

'As we have previously stated, it remains our preference to enter into a negotiated transaction with Illumina and we stand ready to commence discussions at any time,' he said.

The board of Illumina, a major producer of genetic sequencing equipment, said Tuesday that the offer 'is grossly inadequate in multiple respects, dramatically undervalues Illumina, and is not in the best interests of Illumina's stockholders.'

Roche is prepared to pay 5.7 billion dollars in total to shareholders and has offered a price that was 18 per cent over the share price last week.

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