Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Next Thread
Author: blearynet Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 768  
Subject: Roche bidding for Genentech takeover Date: 7/21/2008 2:33 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
On the internet Sunday night...
Roche is bidding 89 dollars a share to take over the rest of Genentech. It presently owns 55% of the company.
Print the post Back To Top
Author: 1Apocalypse Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 740 of 768
Subject: Re: Roche bidding for Genentech takeover Date: 7/21/2008 6:58 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
http://www.bloomberg.com/apps/news?pid=20601087&sid=aPgxXsST...

Print the post Back To Top
Author: BruceInCola Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 741 of 768
Subject: Re: Roche bidding for Genentech takeover Date: 7/21/2008 9:22 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Eerie. Both Morningstar and Zacks have had this valued right at $89 for a while now (at least since mid $60's).

Well, guess I will get out today...that was a short run!

Print the post Back To Top
Author: BeautifulPlumage Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 742 of 768
Subject: Re: Roche bidding for Genentech takeover Date: 7/21/2008 9:27 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Since Roche is already a 55% owner of Genentech, it is hard to know how much of a premium would be appropriate. Consider that:

(1) 55% of the premium paid will come back to Roche as 55% owner of Genentech;

(2) How can Genentech say no? If it comes to a vote, 55% will already be on the yes side. How much would they require, by law? Is it 50%, or more?

(3) Not only do they own 55% of Genentech, they also have all the rights to non-US use of DNA drugs, although they have to pay royalties. It's not like Ventana, where they are starting from a clean slate, they already have certain contractual privileges that they shouldn't have to pay for again.

(4) Although I am not familiar with the details of the original spinoff of Genentech by Roche, my recollection is that DNA cannot sell shares to decrease the Roche ownership position much below 55%. In that case, selling to another (higher) bidder is already not an option, so Roche has a much stronger negotiating position, and lesser need of upping the price, than would be the case in the takeover of an independent company like Ventana, and a DNA investor could notd argue that a premium takeover was part of DNA's prospects.


Of course DNA holders might hope for more, but from Roche's perspective, a 10% premium seems reasonable.

Regards, BP

Print the post Back To Top
Author: BenRx One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 743 of 768
Subject: Re: Roche bidding for Genentech takeover Date: 7/21/2008 9:44 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I bought DNA around 6 years ago I believe. Right now it is trading at about $93.50. Iam unsure of the dynamics of these things. Would it be good to sell now and take the $93.50 or wait and see what Roche might take their bid up to or .... ? I know there is some strategy to this.

Print the post Back To Top
Author: DorMill Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 744 of 768
Subject: Re: Roche bidding for Genentech takeover Date: 7/21/2008 1:33 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
You could sell half now and see how it goes.

Print the post Back To Top
Author: 1Apocalypse Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 745 of 768
Subject: Re: Roche bidding for Genentech takeover Date: 7/23/2008 11:53 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
<snip>

...Roche executives met with investors and analysts Tuesday in New York to further explain the rationale for taking Genentech private and to defend their $89-a-share offer. Roche executives were to meet with Genentech management, including CEO Art Levinson, on Tuesday night.

The consensus appears to be that Roche will have to raise the offer to make the deal work.

"Minority shareholders want to be treated fairly; $89 a share is not fair value,"...

</snip>

from: http://www.thestreet.com/story/10429721/4/what-now-genentech...

Print the post Back To Top
Author: 1Apocalypse Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 747 of 768
Subject: Re: Roche bidding for Genentech takeover Date: 8/14/2008 9:57 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
"Don't ever sell this one. Genenteck is a buy and hold forever investment."

Does this apply even after Roche buys them?

For me, the fun of owning Pixar went away when it became Disney.
But maybe fun is not the point.

-1A
has no professional opinion

Print the post Back To Top
Author: 1Apocalypse Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 749 of 768
Subject: Re: Roche bidding for Genentech takeover Date: 8/21/2008 2:09 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
The reasons expand beyond the personal:

http://www.fiercepharma.com/story/higher-genentech-bid-bigge...

suggests a Roche purchase would fund an exodus of talent.

-1A

Print the post Back To Top
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 750 of 768
Subject: Re: Roche bidding for Genentech takeover Date: 8/21/2008 9:45 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
"Roche purchase would fund an exodus of talent."

Yes, this is clearly a concern, but not one that a savey management cannot address. See for example the purchase of Pixar by Disney--I think 2 yrs ago. Retaining people was fundamental to the deal. And they did it.

Others can if they try. But not if they don't make the effort.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Next Thread
Advertisement