Illumina has ‘unanimously rejected’ Roche’s improved takeover bid claiming the pharmaceutical giant’s offer still undervalues the company.
Roche had tabled an improved offer to acquire the San-Diego based company for $51 per share after its initial bid of $44 per share was dismissed.
In a letter to Roche Chairman Franz Humer, Illumina CEO Jay Flatley said the revised offer still “dramatically undervalues” the company and the “opportunistic offer” does not reflect the “intrinsic strength or future prospects” of Illumina.
Shareholders have now been urged not to tender any shares and support the company’s directors at its Annual Meeting on 18 April against Roche’s additional proposals.
The board of directors, plus financial and legal advisors, met on 31 March and on 2 April to review Roche’s latest offer. They decided that the bid did not “adequately reflect” Illumina’s singular position in an “industry poised for extraordinary growth”.
Jay Flatley, in his letter, noted that Roche had previously claimed that the company has “strong revenue generation, strong profit generation, strong cash generation and a very good track record of delivering continual upgrades in technology to the marketplace”.
He added that the company was in acceptance of this and the board of directors remains confident in the ability of its management team to continue executing these attributes.
“We are committed to acting in the best interests of all our stockholders and believe that Illumina’s strategic plan, executed independently, will create stockholder value significantly greater than what you (Roche) have proposed,” he said.
Illumina is a leading developer, manufacturer and marketer of life science tools and integrated systems for the analysis of genetic variation and function. Roche has been searching to increase its development of target therapies for cancer treatments and Illumina’s gene sequencing technology would help the Swiss-based company progress in this field.