Genentech Reviews Roche Proposal

Genentech, Inc., (South San Francisco, CA) has formed a special committee of its Board of Directors to assess the proposal from the Swiss drug-maker Roche (Basel, Switzerland) to take over the remaining shares of the American biotech giant.

On Tuesday, Roche had made an offer to acquire all of the outstanding shares of Genentech stock not owned by Roche at a price of $89.00 in cash per share. Currently, Roche owns approximately 55.9% of the outstanding shares of Genentech. The special committee, composed of Genentech’s three independent directors, will now review the offer.

In forming the special committee, the Board of Directors of Genentech resolved that the Board would not recommend to stockholders or otherwise approve a merger or other business combination transaction with Roche without the prior favorable recommendation of the special committee.