Genentech says 'no' to Roche's plan to take control

By Lisa Kerner

Charlotte, N.C., Aug. 13 - Genentech, Inc.'s special committee unanimously concluded that Roche Holding AG's recent proposal to acquire the company for $89.00 per share "substantially undervalues" Genentech.

The special committee said it would consider a proposal "that recognizes the value of the company," according to a Genentech news release.

In July, Roche offered $43.7 billion, or $89 a share, for full ownership of Genentech. The combined entity would have been the seventh largest U.S. pharmaceutical company in terms of market share and would employ around 25,000 people in the United States, it was previously reported.

Roche, the Basel, Switzerland, pharmaceutical company, acquired a majority in Genentech in 1990 and currently owns 55.9% of all outstanding shares, it was previously reported.

The chairman of Genentech's special committee, Charles A. Sanders, noted that regardless of the ownership structure, Genentech planned to maintain its relationship with Roche.

The special committee approved the implementation of a broad-based employee retention program to address any employee concerns created by the Roche proposal, Genentech added.

Genentech is a South San Francisco, Calif., biotechnology company.

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