Illumina (ILMN -4.2%) gains a vital victory in its bid to fend off Roche's (RHHBY.PK) advances as shareholders elect all four of Illumina's nominees to its board. Investors also reject Roche's attempts to increase the number of directors and other proposals. Roche said earlier it won't extend its offer.
Today is a big day for Illumina (ILMN) in its battle to fend off Roche's (RHHBY.PK) $6.7B bid, with shareholders due to vote on new directors at the company's annual meeting. Roche has made six nominations, which would give it control of the board, although three proxy advisory services have backed Illumina's four candidates.
Illumina (ILMN -5.6%), which has twice rejected Roche's (RHHBY.PK) takeover bids, drops below the latest $51/share offer price for the first time as investors grow concerned the deal will be abandoned. The offer is “more than adequate to serve as a basis” to start talks and “is full, fair and extremely attractive by every conceivable financial metric,” Roche says today.
Swiss drugmaker Roche (RHHBY.PK), in a new letter to Illumina (ILMN) shareholders a week ahead of a shareholders meeting for the maker of genetic analysis equipment, appears to indicate a willingness to raise its $51/share offer. ILMN shares, -1.6% AH, have been trading above $51 and closed at $52.57 today.
In another blow to Roche’s (RHHBY.PK) hostile grab for gene-sequencing company Illumina (ILMN -0.7%), proxy adviser Glass Lewis recommends shareholders support ILMN’s board in its proxy fight, joiningISS and Egan-Jones. ILMN says it is pleased to have all three well-known shareholder advisers on its side.
Roche (RHHBY.PK) said on Friday that it remains "willing to consider additional value" to its $6.7B bid for Illumina (ILMN) after receiving a setback from two proxy advisors. Institutional Shareholder Services and Egan-Jones Ratings recommended that shareholders reject Roche's offer and its nominees for the U.S. firm's board.
Roche (RHHBY.PK) presses on its pursuit of Illumina (ILMN), appealing directly to shareholders in a letter which says its $51/share bid "represents a significant premium to where Illumina would likely trade on a standalone basis and provides certainty of value through an all-cash payment to Illumina's shareholders." (previously)
Illumina (ILMN -1.2%) says its Board unanimously rejects Roche's (RHHBY.PK +2.3%) revised $51/share takeover offer, claiming the offer still undervalues ILMN and does not adequately reflect the company's singular position in an industry poised for extraordinary growth. (earlier)
Roche (RHHBY.PK) may drop its $6.7B bid for Illumina (ILMN), according to a report in SonntagsZeitung. Sources say Roche may run out of patience soon and views Illumina as a "nice-to-have" but not a "must-have."
Roche (RHHBY -0.9%) could up its bid even further if Illumina (ILMN +2%) were to hold talks, according to sources familiar with the situation. The drug giant just raised its bid to $51 a share, but could go higher still if talks were agreed to and Roche saw more value in its business. Roche is facing opposition from Baillie Gifford, Illumina's second-largest shareholder with an 11% stake.
Shares of Illumina (ILMN) tack on a 2.6% gain premarket to $51.16 after Roche raises its offer to buy the company to $51. JPMorgan doesn't think the action is over and is out with an early morning call for shares to run up to $55.
Roche (RHHBY.PK) raises its hostile offer for Illumina (ILMN) by 15% to $51/share, or ~$6.7B, hoping to close a deal more quickly with shareholders that have thus far been unimpressed by the perceived lowball offer. Illumina shares closed at $49.88 yesterday, above the initial $44.50/share bid.