Roche begins tender offer for Genentech

By Lisa Kerner

Charlotte, N.C., Feb. 9 - Roche Holding AG began its $86.50-per-share tender offer for all the outstanding publicly held shares of Genentech, Inc. on Monday.

The offer is set to end at midnight ET on March 12, unless extended, a Roche news release said.

According to Roche, the offer replaces its July 21, 2008 proposal to acquire the Genentech shares for $89.00 apiece in a negotiated merger, which Genentech rejected.

Genentech's board of directors urged shareholders to take no action and said it will take a formal position within 10 business days following the commencement of a tender offer, a prior news release said.

"While we have changed our approach to the transaction, our plan on how we will combine the two companies remains unchanged," chairman of the Roche Group Franz B. Humer said.

"We remain committed to retaining Genentech's top talent and approach to discovering and progressing new medicines."

Humer said that Genentech's research and early development will operate as an independent unit within the Roche Group. Roche Pharma's U.S. commercial operations will be transferred to Genentech's site in South San Francisco, Calif., and will reflect the Genentech name.

Roche, a Basel, Switzerland, pharmaceutical company, said it currently owns approximately 55.8% of the biotechnology company's outstanding shares.

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