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I got the reduced offer in the mail today. Think I'll pass.
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me too!
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I am putting in my limit sell order for $95.00 - that will give me 15% gain. I almost sold a few months ago for $99. I am not sure we will see that price again soon.

I am build ing cash right now.

Razz
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I received Roche's new offer today for $95 per share. But we only have until March 25, 2009 to decide whether to take action.

For the last offer Genentech sent out a mailing recommending we not take the Roche offer as they believed it was too low. I'm wondering what Genentech thinks of this offer, but with the deadline of next Wednesday there probably isn't much of a chance that we'll hear from Genentech.

So what are your thoughts about this one?


Razz, on 2/25/2009 you said,"I am putting in my limit sell order for $95.00 - that will give me 15% gain. I almost sold a few months ago for $99. I am not sure we will see that price again soon.

I am build ing cash right now.

Razz
"


Are you taking this offer, or do you have hope for either a better offer or that the share price will increase above $95 even if Roche's offer doesn't?

Sue
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Roche's latest offer was $95 a share and Gen said it was okay.

The only reason why I declined this time is the broker fee is higher than waiting for Roche to complete the sale.
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I still have a sell order in for $95 and am holding out for the market to buy. I don’t like the $30 transaction fee from the offer because I pay $9.99 for my trades.

I will vote no.

Razz
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I can’t help but wonder why people are selling in the $93 dollar range when there is an offer at $95.

Razz
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The $93 is sure money now. The $95 is offered but subject to regulatory approval and as in the recent case of Dow/Rohm & Haas dependent on available financing.

It is normal when there is a tender offer for the price of a stock to sell for broker commission less than the offer. Wider differentials imply some uncertainty on the part of sellers that the deal will close.

Usually the company making the tender offer will take advantage of lower trading prices to acquire shares at a discount from the offered price. Failure to do so implies uncertainty on the part of the acquirer. They lack financing or they have their doubts too about the deal closing successfully.

These wide differentials in tender offers are somewhat new. They were also quite wide in the InBev/Anheuser Busch deal, which eventually closed. Rohm & Haas deal also seems set to close soon. In both cases, investors could have made a fast 20% on their money buying discounted shares and waiting for the announced deal to close. But not all deals close successfully.
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