Not even a month and
Roche Holdings Ltd.
) announced the extension of its
) bid for the second time. Roche recently announced that it has
extended the time period for acquiring all outstanding shares of
Illumina to April 20, 2012, from the previously-announced date
(March 23, 2012). Roche also said that apart from the extension of
the tender offer expiration date, all other terms and conditions
On the 27
of last month, Roche had extended the time-frame to March 23 from
February 24, 2012. Roche had first announced its bid in January to
acquire all shares of Illumina at an offer price of $44.50 per
share (aggregate value $5.7 billion) in cash.
In mid-March 2012, the Federal Trade Commission (
) requested additional information regarding the proposed
acquisition of Illumina. The request, termed a 'second request,'
sought additional information about Roche's microarray
The second request extended the waiting period, imposed by the
Hart-Scott-Rodino Antitrust Improvements Act, by 10 days after
Roche complies with the request. The extension can be increased
voluntarily by Roche or terminated sooner by the FTC.
Post the potential acquisition, Roche intends to combine
Illumina with its Applied Science business, thereby strengthening
its current offerings in the Life Science market. Roche operates
through two segments - Pharmaceuticals and Diagnostics. Applied
Science is a wing under the company's Diagnostics division.
Roche believes that this acquisition will strengthen its
position in the sequencing and microarrays market. Moreover, it
will help address the growing demand for genetic/genomic
We currently have a Zacks #3 Rank (short-term Hold rating) on
Roche. We believe that this transaction will add to the company's
portfolio, thereby driving long-term growth.
ILLUMINA INC (
): Free Stock Analysis Report
To read this article on Zacks.com click here.