Genentech special committee rejects initial Roche proposal
The special committee of the board of directors of Genentech has, after careful consideration, unanimously concluded that Roche's proposal to acquire the shares of Genentech not owned by Roche for $89.00 per share substantially undervalues the company and therefore does not support it.
The special committee of the board of directors of Genentech has, after careful consideration, unanimously concluded that Roche's proposal to acquire the shares of Genentech not owned by Roche for $89.00 per share substantially undervalues the company and therefore does not support it.
However, the special committee would consider a proposal that recognises the value of the company and reflects the significant benefits that would accrue to Roche as a result of full ownership.
"The special committee is confident in the company's strong financial and clinical momentum and its uniquely productive r&d capabilities," said Dr Charles A. Sanders, chairman of the special committee. "In addition, we look forward to the company maintaining its successful relationship with Roche, regardless of ownership structure."
In light of the tremendous importance of Genentech's employees to the company's success, the special committee has approved the implementation of a broad-based employee retention programme to address any employee concerns created by the Roche proposal. Genentech's Board of Directors, including the Roche representatives, had previously granted the special committee authority to implement such a programme.