Roche vs Illumina – Round 2


Last week, Roche released a plan to take over Illumina’s Board. Roche announced that it has provided notice to Illumina, Inc. that it will nominate a slate of highly qualified, independent candidates for election to Illumina’s Board of Directors and propose certain other matters for the consideration of Illumina’s shareholders at Illumina’s 2012 annual meeting, which, if adopted, would result in Roche-nominated directors comprising a majority of the Illumina board. Roche also named five alternate nominees for election to Illumina’s board. (see the Roche release…)

Tuesday, Illumina’s board unanimously rejected Roche’s $5.7 billion bid to take over the maker of gene-mapping tools as “grossly inadequate.” “The timing of the offer is blatantly opportunistic and does not reflect Illumina’s strong platform of new products and pipeline,” Chairman William Rastetter and Chief Executive Officer Jay Flatley said yesterday in a letter to shareholders. (see the Illumina release…)

Yesterday, Roche released a statement that they are disappointed by the actions of Illumina’s Board of Directors. “We are disappointed that Illumina’s Board of Directors has recommended against our offer and refuses to engage in substantive discussions with Roche,” said Severin Schwan, CEO of Roche Group. Schwan continued, “We have reviewed Illumina’s 14D-9 filing, and we continue to believe that our offer is full and fair and provides a unique opportunity for Illumina’s shareholders. As we have previously stated, it remains our preference to enter into a negotiated transaction with Illumina and we stand ready to commence discussions at any time.” (see the Roche release… )